JARLE Volume IX Issue 4(34) Summer 2018. - Possibility_of... · 2019. 5. 6. · Volume IX, Issue 4(34), Summer 2018 1165 11 The Analysis of Customs Services Practice in the Conditions

Volume IX, Issue 4(34), Summer 2018

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Quarterly Volume IX Issue 4(34) Summer 2018 ISSN: 2068-696X Journal’s DOI: https://doi.org/10.14505/jarle

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Journal of Advanced Research in Law and Economics

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Contents:

1 Features of Compensation for Damage Caused to Natural Resources in Kazakhstan

by Z. Abdukarimova, K. Bitemirov, N. Bizhan, A. Esenaliyev, and N. Poshanov, Z. Kalkanova … 1169

2 Assessing Corporate Culture of an Enterprise-based on Competing Values Framework Design

by I.S. Balandina, L.V. Obolentseva, S.A. Aleksandrova, Y.O. Polyakova, and S.B. Dulfan … 1176

3 Development Problems of Social Entrepreneurship in Kazakhstan

by M.Sh. Bauer, R.S.Mussina, N.A. Bencheva, T.V.Ovchinnikova, and I.K. Amerkhanova … 1186

4 State Planned Economy within the Modern Economic Regime by S.P. Bortnikov … 1196

5 Effective Human Capital Management as a Growth Factor in the Agricultural Production Sector

by Z. Serikovna Bulkhairova, Z. Shansharovna Nurtayeva, Z. Davitovna Imashova, G. Amangeldievna Saimagambetova, and S. Rahmetovna Abdiyeva … 1205

6 The Influence of Distinctive Capability and Innovation Management towards the Performance of ISPs in Indonesia by H. Christiadi, E. Tisnawati Sule, Y. Suryana, and E. Febrian … 1212

7

Analysis of Electricity Production and Consumption in the Western Economic Zone of the Republic of Sakha (Yakutia) for Developing an Effective Fuel and Energy Balance

by I. Damdinovna Elyakova, N. Sergeevna Buryanina, Y.Fedorovich Koroluk, A. Lvovich Elyakov, L. Ivanovna Danilova, A. Andreevich Khristoforov, and E. Evgenyevna Noeva … 1222

8 Studying Concepts of the Breakthrough Economic Reforms in Selected Developed and Developing Countries and Regions of the World: Economic and Legal Aspects

by Е. Еvgenevna Frolova, S. Sergeevich Zankovsky, M. Nikolaevich Dudin, S. Borisovich Zinkovsky, and A. Nickolaevich Kirsanov … 1236

9 Digital Economy: Challenges and Threats for Modern Russia by A.I. Gretchenko, I.V. Gorokhova, O.G. Demenko, and A.A. Gretchenko … 1243

10 Model of Remuneration: ‘Catching up’ Type (Russian Case) by A. Ivanovich Gretchenko, O. Gennadevna Demenko, and A.A. Gretchenko … 1249

Editor in Chief Madalina Constantinescu Association for Sustainable Education Research and Science, and Spiru Haret University, Romania

Co-Editors

Russell Pittman International Technical Assistance Economic Analysis Group Antitrust Division, USA

Editorial Advisory Board

Huseyin Arasli Eastern Mediterranean University, North Cyprus

Jean-Paul Gaertner Ecole de Management de Strasbourg, France

Shankar Gargh Editor in Chief of Advanced in Management, India

Arvi Kuura Pärnu College, University of Tartu, Estonia

Piotr Misztal Technical University of Radom, Economic Department, Poland

Adrian Cristian Moise Spiru Haret University, Romania

Peter Sturm Université de Grenoble 1 Joseph Fourier, France

Rajesh K. Pillania Management Developement Institute, India

Rachel Price-Kreitz Ecole de Management de Strasbourg, France

Laura Ungureanu Association for Sustainable Education Research and Science, Romania, Romania

Hans-Jürgen Weißbach, University of Applied Sciences - Frankfurt am Main, Germany

Summer 2018 Volume IX, Issue 4(34)


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11 The Analysis of Customs Services Practice in the Conditions of the Eurasian Economic Union: Problems and Directions of Improvement

by Y. Evgenievna Gupanova, G. Iksanovna Nemirova, and A. Evgenievich Suglobov … 1259

12 The Tools of Social Technologies in the Management System: Private and Public

by S.A. Ilynykh, M.V. Melnikov, N.G. Suchorukova, S. V. Rovbel, and M.V. Udaltsova … 1267

13 The Ideology of the European Union by E.A. Iukov, and V.V. Zheltov … 1278

14 Developing Internet Banking Within the Context of Building A Bank’s Competitive Advantage by N. Khamitkhan, E. Bakhyt, and A. Karshalova … 1286

15 Possibility of Project Management in the Activities of Non-profit Organizations by A.N. Khorin, A.V. Brovkin, and Y.M. Potanina … 1291

16 Diagnosing Changes in Financial and Economic Indicators of the European Union countries and the Russian Federation in Crisis by D.A. Kornilov, N. I. Yashina, S.N. Yashin, N.N. Pronchatova-Rubtsova, and I.S. Vinnikova … 1302

17 Forensic Enquiry as a Method for Objective Evidence Verification by R.V. Kostenko, and E.S. Tokarenko … 1312

18 Methodological Basis of Assessment of Innovative Potential in the Regional Management System

by N. Krasnostanova, S. Maidaniuk, N.V. Pryvalova, and N.V. Akymenko … 1317

19 Conceptual Logical Model of Managing the Development of Local Food Markets in the Context of Intermunicipal Socioeconomic Differentiation

by N. Leonidovna Kuzmina, and L. Leonidovna Tonysheva … 1324

20 Methodological Approaches to Assessing the Efficiency of Personnel Management in Companies

by K.A. Lebedev, O.Sergeevna Reznikova, S. Dmitrievna Dimitrieva, and E. Ismetovna Ametova … 1331

ASERS Publishing Copyright © 2018, by ASERS® Publishing. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Romanian Copyright, Designs and Patents Law, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department of ASERS Publishing: [email protected] and [email protected] http://journals.aserspublishing.eu ISSN 2068-696X Journal DOI: https://doi.org/10.14505/jarle Journal’s Issue DOI: https://doi.org/10.14505/jarle.v9.4(34).00



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21 Food Security Assessment in Kazakhstan by G. Koishybaevna Lukhmanova, N. Baisharipovna Syzdykbayeva, L. Abdybayevna Baibulekova, S. Ergazykyzy Abdykalyk, and A. Askarovna Seidakhmetova … 1337

22 Development Prospects of Ukraine’s Foreign Trade in Agricultural Products in the Context of European Integration and Global Challenges by I.Y. Matyushenko, T. V. Shtal, L.I. Piddubna, I. O. Piddubnyi, and Y.M. Kvitka … 1343

23 On the Issue of Criminal Prosecution for Market Abuse in Russia and the European Union

by Y. Vladimirovna Mikhalenko (Kalinina), E. Gennadievna Shadrina, and A. Ibragimovna Rashidova … 1362

24 International Fragmentation of Production and Export-Import Determination in the European Union Member Countries by Rajmund Mirdala … 1365

25 Management Technologies to Adapt Modern Principles of Industrial Enterprise’ Management

by V.Y. Mishakov, O.N. Beketova, V.M. Bykov, O.V. Krasnyaskaya, and M.G. Vitushkina … 1377

26 Using Public-Private Partnership for Stimulating Innovational Developments in the Infrastructural Sphere by I. Morozova, T. Litvinova, I.A. Mordvintsev, and O.V. Konina … 1382

27 The Association between Enterprise Risk Management and Corporate Governance Quality: The Mediating Role of Internal Audit Performance by F.M. Mustafa, and M.B. Al-Nimer … 1387

28 Specifics of Integration Processes in the Former Soviet Union: The Case of the Eurasian Economic Union

by A. Oinarova, R. Alimkulov, and S. Tlepina … 1402

29 Comprehensive Estimation of Prerequisites on Creating an Agricultural Cluster in the Akmola Region

by S. Okutayeva, N. Yesmagulova, A. Sultanova, S. Iskendirova, K. Japarova, and T. Kuangaliyeva … 1416

30 Creative Industries Development in Russia: Tendencies and Perspectives by O. Patlasov, and Y.Zharov … 1428




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31 Domestic Revenue Mobilization and Agricultural Productivity: Evidence from Nigeria

by O. Popoola, A.J. Asaleye, and D.F. Eluyela … 1439

32 Statistical Methods in the Analysis of Pollution Impacts on Human Health

by M.V. Rossinskaya, V.V. Rokotyanskaya, V.V. Medovy, E.V. Ivanova, and E.Ch. Shaduyeva … 1451

33 Economic Ways to Improve the Mechanization of Production by A.V. Rusnak, K.A. Buzhymska, H.Yu. Tkachuk, S.I. Pavlova, and N.L. Ovander… 1461

34 Major Development Mechanisms for the Infrastructure of the Transport and Logistics Complex in Kazakhstan by G. Sovetovna Saktaganova, L. Valentinovna Legostaeva, and A. Tursynbaevna Karipova … 1474

35 Development of Professional Competency of Managerial Staff on the Basis of Acmeological Approach by T.V. Shtal, I. Lytovchenko, and H.A. Poliakova … 1481

36 On the Issue of the Limits of Discretion of the Deputies in Assessing the Annual Report of the Head of the Municipality

by S. Gennadevich Solovev … 1489

37 Financial Control and Financial Monitoring within the System of Government Financial Administration: Correlations and Interrelationships

by E. Lvovna Vlasova, and E. Victorovna Barasheva … 1494

38 Optimization of the Management Process in Conditions of the Political Space Transformation: Methodology of Conflict Analysis

by N. Yurchenko, V. Skorobogatov, I. Yurchenko, M. Dontsova, and T. Telyatnik … 1503




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Journal of Advanced Research in Law and Economics is designed to provide an outlet for theoretical and

empirical research on the interface between economics and law. The Journal explores the various understandings that economic approaches shed on legal institutions.

Journal of Advanced Research in Law and Economics publishes theoretical and empirical peer–reviewed

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interrelationships between economics and procedural or substantive law (including international and European Community law) and also legal institutions, jurisprudence, and legal and politico – legal theory.

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Invited manuscripts will be due till 15th of July, 2018, and shall go through the usual, albeit somewhat expedited, refereeing process.

Deadline for submission of proposals: 15th of July, 2018 Expected Publication Date: September 2018 Web: http://journals.aserspublishing.eu E–mail: [email protected] Full author’s guidelines are available from: http://journals.aserspublishing.eu/jarle/about

Call for Papers

Volume IX, Issue 5(35), Fall 2018



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Possibility of Project Management in the Activities of Non-profit Organizations

Alexander N. KHORIN

Department of Accounting, Analysis and Audit, Moscow State University, Moscow, Russian Federation [email protected]

Alexander V.BROVKIN Departments of Accounting, Statistics and Audit, Moscow State Institute of International Relations

(MGIMO University), Moscow, Russian Federation [email protected]

Yulia M. POTANINA Departments of Accounting, Statistics and Audit, Moscow State Institute of International Relations

(MGIMO University), Moscow, Russian Federation [email protected]

Suggested Citation: Khorin, Alexander N.; Brovkin, Alexander V.; and Potanina, Yulia M. 2018. Possibility of Project Management in the Activities of Non-profit Organizations, Journal of Advanced Research in Law and Economics Volume IX, Summer, 4(34): 1292 – 1301. DOI: 10.14505/jarle.v9.4(34).15. Available from: http://journals.aserspublishing.eu/jarle/index

Article’s History:

Received April, 2018; Revised May, 2018; Accepted June, 2018. 2018. ASERS Publishing©. All rights reserved.

Abstract:

Modern organizations function in a constantly changing external environment, due to social and scientific progress, there is also the complexity of their internal environment. The result is a high variability of conditions and factors that determine the effectiveness of management. As a result, exacerbated the contradiction between the desire of the organization to maximize typing business processes of their activities (to reduce costs and reduce risks) and the variable nature of the business environment, continuous adaptation is necessary to ensure competitiveness and, eventually, the viability of the organization. Considered the contradiction is evident in the number of private - in contradiction between the standardization of the product and the individual nature of consumer demands, between routine and project components activities organization, etc., Thus, an urgent task for modern research in the field of management theory is the search for balance between standard and unique elements in the work of the organizations. Note that although the practical need to eliminate this contradiction has led to the development of a number of management tools designed to mitigate it, today the problem of the existence of this contradiction has not received proper reflection in the scientific literature. As a result, not only lack understanding of the organizational and economic nature of this contradiction, but the scientifically-methodical device for its elimination. Consider the situation unacceptable from a scientific (without proper consideration remains an important aspect of organization management), or practical (lack of tools eliminate the conflict reduces the effectiveness of both individual enterprises and the economy as a whole) points of view. Particularly acute this contradiction is manifested in the relationship of organizations with major business partners, cooperation with whom has a low level of standardization of business processes because of the complexity and specificity of jointly implemented projects. This places high demands on the quality of managerial decisions taken in the process of business interaction for justification, which requires the development of special methods and algorithms. The result of the phenomena is the decline in the quality of the management decisions due to the fact that organizations are forced to act not proactive, and reactive, developing individual situational tools for each individual project and group business processes, as a result, the risks. All of the above determines the relevance and significance of the chosen research topic.

Keywords: non-profit organization; management; economic environment; economic balance and development.

JEL Classification: K14; K36; Z18.

DOI: https://doi.org/10.14505/jarle.v9.4(34).15


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Introduction Analysis of currently used tools in addressing the contradictions between a standard and unique components in the organization's activities must be performed for both internal and external forms of manifestation of this contradiction. As for the external contradictions, the problem, obviously, is the search for the tools of standardization, harmonization of any elements in the composition of a differentiated product. In many ways, this task is equivalent to the formation of a pool of assets with the optimum degree of specificity, or, more precisely, the formation of a pool of assets with varying degrees of specificity, but with optimal (from the point of view of customer) by a combination of these degrees.

In our opinion, defining the composition of the proposed company product differentiable and standardized components can solve it. Differentiable component provides the perception of a specific client product as geared towards the satisfaction of his specific needs. Standardization part is the same across all versions of the product supplied to various clients. The allocation of differentiated and standardized components in the case of mass products may be based on the following methods:

(1) service – in this case, all customers are provided with the same according to the technical characteristics of the product (i.e. the production standardized to the maximum extent), however, may vary level of service, and, more importantly, the model of organization of interaction with the customer adapts the features of this client. This method follows the concept of service marketing.

According to one of the leading experts on marketing Christian Gronroos in the market have value only as characteristics of the material of the product is largely the same at most vendors. This method requires highly skilled sales and marketing personnel. In other words, the actual adaptation of the product does not occur, does not occur and formation of pools of specific assets. Instead, the organization recruits and prepares highly trained sales, marketing and service personnel able to perform and satisfy specific needs of the client (i.e. as a specific asset it is the staff) (Boesso et al. 2017). Despite the seeming simplicity of this approach (at first glance, you only need to learn the sales staff responsive to customer requests and service staff to teach all those skills that may be required to service a specific customer), it is quite difficult to implement. First of all, the cost of attracting and training service-oriented employees can be quite high. Furthermore, the orientation on the tools is often of a declarative nature.

Staff not sufficiently attentive to customers' requests, not having enough time to respond to the request and to satisfy it, etc. To work on this model, employees should be their own desire for customer satisfaction, understanding customer value for the company and the realization of service-oriented behavior as the only acceptable. This requires not only training, but also an appropriate corporate culture within the organization, explicitly and implicitly encourage employees to such behavior (as it happens, for example, in the famous American Mayo clinic);

(2) marketing – similar to the technical characteristics of products created by different marketing policies that position them as different products for different target audiences. A substantial part of the production process is unified. This model is actively used by leading car manufacturers, producing cars of different brands on the same platform (for example, at the factory in Kaluga from one conveyor roll off cars ‘Citroen’, ‘Peugeot’ and ‘Mitsubishi’, in Kamenka near St. Petersburg the situation is similar in relation to the brands ‘Hyundai’ and ‘KIA’ etc.).

Unlike the marketing approach from the service is that when you first approach the client has not formed a view about the principle, adapted to the features of the product – adaptation is achieved through high quality interaction of the organization with the customer (in other words, when the service approach to adaptation is not perception of the product by the client, and the interaction between the customer and the company).

The problem is the marketing approach often lies in the fact that the company is, in fact, is cheating the consumer, giving him a false sense of fundamental dissimilarity of products related to different marketing groups (for example, sold under different brands: it is in fact in the cars of brands Toyota and Lexus), and, as a consequence, widely differing prices, but similar from the point of view of the objective of consumer characteristics. To prevent this problem, the products sold under different marketing offers, have yet to have any differences from the point of view of consumer characteristics;

(3) organizational – to communicate with different clients (target audiences) created a separate unit responsible for the development of customized products for customers. In other words, the complexity of the proposed product and the depth of differentiation (i.e. the difference of customers ' requests) such that it does not make sense to produce it in the same enterprise. However, a number


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of organizational processes and functions are centralized at the head office, which allows us to achieve economies of scale for management processes and for the production processes (for example, due to wholesale discounts in the centralized purchase or centralized development of the core technology underlying all offer differentiated products).

It is important to note that the organizational approach can be implemented either through the allocation of part of a structure of specialized Autonomous entities (quasi-externalization in the terminology of Sheresheva), and on the basis of a partial Association of independent enterprises (quasi-internalization) which usually form a strategic Alliance, organized on the basis of competitive cooperation. These alliances are widely distributed in the global transport industry, in particular, in the field of passenger air traffic and international sea container transport (Chiang Hsieh and Noonan 2017). It is easy to see that the organizational approach means the impossibility of a standardization of all corporate business processes connected with customer service, in a single structure, which means that in this case the external is superimposed internal contradiction, which requires an integrated Toolkit of eliminating both contradictions. 1. Literature Review Unlike marketing and service approaches, and organizational approach involves the creation of specific manufacturing assets required for the production of adapted to the customer requirements of the product. Total assets (as shown above – related business processes procurement or development) remain under the supervision of the parent company, whereas the specific assets needed to service the requests of certain groups of consumers, are at the disposal of the specialized units (or remain in their squad, if we are talking about a strategic Alliance of independent companies).

Organizational approach, as is evident from its name, involves the company's reorganization and reengineering of their business processes. In this case, the company doing the evolution from the classic hierarchical organization to integrated structure under a single owner's control, but with units that have a significant degree of autonomy. A single owner's control does not mean that the parent company and divisions belong to the same owner. We are talking about the fact that both the parent company and the divisions the bulk of capital is controlled by the same owner, however, can be presented to other co-owners (Johnsen 2017).

Autonomy is a key factor in the effectiveness of this approach, because otherwise the costs of vertical control separate divisions from the parent company will be too great, and thus this control would hinder quality performance of departments their tasks (as the parent company no relevant competence).

On the other hand, the degree of freedom units should not be redundant to the integrated structure is not divided into separate components (to satisfy the ambitions of managers and co-owners of units), and to some of the most attractive units weren't bought out by other (third-party) entities. Practically, this means that under the control of the units should remain the interaction with clients and the necessary production assets, while the financial and management component, as well as the core of the production process should remain under the control of the parent company.

In this case, the production autonomy of individual units will not grow into managerial and financial autonomy. Obviously, the institutional approach involves a much higher level of specificity of assets (from the point of view of their adaptation to requests of the customer);

(4) outsourcing – in this case the company transfers to an external implementing all stages of the production process (that perform them at a lower cost than the customer, thanks to its specialization and scale of production), and the company received from these suppliers of components generates a range of finished products that it had developed independently. This model is actively used in the aviation industry and, more broadly, transport engineering (in fact, many industrial enterprises in these industries, in fact, degenerated into Assembly plants) (Dato-on and Keller 2017).

As in the case with the organizational approach, the outsourcing model is also associated with the reorganization of business processes (i.e. elimination of their parts outside the enterprise),ie, it, if necessary, resolves both contradictions – both external and internal. In the framework of the outsourcing approach, the organization refuses to create specific assets and prefer to buy the right products from external suppliers, usually under long-term contracts.

This approach is associated with a number of advantages, primarily the emergence of the ‘service arm’. I.e. there is expansion of production capabilities of the company by being able to use the power of outsourcers. Also is an increase in the profitability of its assets by eliminating non-core or insufficiently profitable activities. However, one should not forget that when outsourcing, the organization becomes dependent on external suppliers of resources, and in the case of denial of access to these resources creates a threat to its industrial


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activity (as happened, in particular, with the oil and gas sector after the introduction of Western sanctions in 2014; another typical example is the freezing of domestic airlines ‘Dobrolet’, which was never launched.

However, the presence of elements of external control over the activities of the company the list of disadvantages of outsourcing is not confined. To outsource, you must have market professional foreign artists, and we are not talking about the existence of a single potential contractor, and on the functioning of the whole auxiliary industry, among the enterprises which the Contracting authority could find a better subcontractor.

This lack of industry or lack of development forces the organization to form everything necessary for its business assets, which negatively affects its effectiveness (as due to significant acquisition costs of these assets, and due to high management costs). Unfortunately, in some industries of the Russian economy this factor (the absence of qualified subcontractors) is an important reason why organizations decide on building a vertically or horizontally integrated structures (Liston-Heyes et al. 2017).

The outsourcing approach is typical for large orders, when the contractor received the order, performs it in full, and attracts to implement individual tasks within a core of specialized subcontractors. Often the contractor is generally not engaged in production activities, and performs the role of coordinator and integrator of the subcontractors in the interests of the customer. This is due to the fact that the complexity of the orders large, and the conditions for their implementation are quite different among themselves, so the organization is inappropriate to deal with these issues on their own. In the limiting case of an outsourcing approach is that the receiving orders of the kernel for each query generates a separate production structure (which may take the form of the dispatching enterprise, virtual enterprise, etc.). The essence of this model is in its modular nature: through linkages with a significant number of subcontractors in the kernel when a request is received, design under a specific modular production structure.

However, to work with large customers modular model is not suitable. In this statement there is no conflict with the thesis expressed above that to service large customers or contractors, it is advisable to use the outsourcing model. The fact that a modular approach, in fact, implies organization of the administrative apparatus in the absence of productive assets (which are involved in the receipt of the order at external subcontractors). In this model, the organization lacked the specific competencies that are needed to meet the challenging requests of large customers. In other words, the modular structure is incapable to execute complex orders, rather, it allows you to assemble from ready-made standard elements of products that meet the needs of the customer.

In the outsourcing model, the situation is fundamentally different in nature. The organization has key assets and competencies necessary for business operations (trained personnel, equipment, software, etc.) and external contractors are attracted only to complement their assets and to ensure best fit their production resources to customer requirements and specifics of the project. It is obvious that the outsourcing model allows you to implement more complex tasks than the unit that determines the feasibility of its use for maintenance of major customers (Haddad 2017).

The difference between outsourcing and modular models it is convenient to illustrate with the proposed Kryuchkovym concept of the enterprise ‘core – shell’, where core refers to the key unit under the control (management and ownership) of the company, and the shell is a support unit that can be part of the organization and to involve external contractors. For unit model, the core is actually missing, it is concentrated in a minimum number of functions, and non-productive character, whereas for the execution of the received order every time a new shell. In the outsourcing model, the core includes a production unit, and the relationship with shell units are relatively long term in nature. In both cases, obviously, we are talking about a kind of ‘metatime’ (Das 2016).

Thus, it is easy to see that the difference between the above instruments to eradicate the external conflict is, first, in what specific assets the organization forms to communicate with different groups of consumers, and secondly, what is the level of specificity of assets, and third, who exactly generates these assets – one company, its separate divisions or external structure. 2. Project Management as a Form of Non-Profit Organizations The choice of the method of formation of assets, as we know from the modern institutional theory of the organization is determined by the magnitude of transaction costs, and, as shown by I. V. Kiryanov, their dynamics in comparison with the economies of scale of production. You can also sure to eliminate external and internal contradictions can be used the same instrument (as is the case for organizational and outsourcing approaches).

Internal contradiction can be solved in much the same way (i.e., by isolating unique and standard, or, more precisely, the design and components of routine), however, this allocation is not from the client's point of view and from the point of view of internal business processes of the company. It is important to note that these allocation components is possible only after the company has already implemented a project – in the absence of


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actual experience attempt to highlight design and routine components will be of a speculative nature (however, this problem can be partly solved by using the benchmarking, or by reference to a consulting organization). However, as shown above, organizational and outsourcing approaches can be used to eliminate both external and internal contradictions (Chiang Hsieh and Noonan 2017).

With regard to the internal contradiction of the use of the organizational approach is to create in the composition of the economic entity specialized unit that will handle certain types of work in the interests of the institution in General (i.e. to undertake the project component of the specific task, whereas the routine component will be implemented by other units within the framework of its basic economic activity). The feasibility of establishing such a unit occurs in the case where the level of complexity of the task (or, more precisely, the individual elements of a task) exceed the level of competency of those service companies that would perform them, and such tasks are frequent and regular, and fairly uniform in content (otherwise, the activities of a specialized unit may not be recouped). Similarly, using the outsourcing model to solve the internal contradictions involves building long-term relationships with relevant external operators who will be tasked with conducting specific functional tasks in the interests of the organization. The outsourcing model is preferred, if the transmitted function does not have strategic value for the organization, and if the creation of assets required for their implementation, requires excessive costs.

According to the results of the conducted analysis it is possible to formulate the following conclusions (Forcada et al. 2017):

(1) currently there is a wide range of tools to resolve the contradictions between a standard and unique components in the organization's activities that can be used to mitigate both external and internal forms of manifestation of this contradiction;

(2) the instruments used differ according to three criteria: the level of specificity of assets the variety of assets to ensure the specificity of the organization that will build these assets. The choice of tool is determined by the characteristics of the organization both from the point of view of its internal functioning and from the point of view of the specificity of the market in which it operates;

(3) although the above described tools are used actively, but their application is to some extent spontaneous, and these tools do not constitute a system and are treated in isolation from each other. In particular, currently there is no methodological apparatus that would allow the organization to choose the tool that best meets its needs. The methodological apparatus which has been proposed by specialists, is intended to justify the use of only any one of the above tools, while no techniques that would allow to choose the best of these tools, taking into account peculiarities of the problems facing the organization.

As exceptions from this rule can only be called various versions of ‘outsourcing matrix’ (where instead of a binary choice ‘to use the tool is to abandon the use of the tool’, is typical for most methods), the organization offers a wider range of possible strategies, as well as the algorithm implementation of benchmarking. In this case, benchmarking is regarded not in itself, but only as one potential tool for addressing problems facing the organization. Probably, this conclusion can be considered the most important from a methodological point of view: the organization needs to justify expediency of application of a tool in itself, but to confirm/to prove its optimality compared to other possible tools. 3. Non-Governmental Support for Non-Profit Organizations As evidenced by the analysis of the business practices, organizations pay more attention to relationships with large customers, due to the importance of these customers for generation of revenue. However, despite such high importance of large consumers, at present, is virtually absent as a single generally accepted definition of ‘large consumer’, and the methodological apparatus for relationship management of the supplier or contractor with such clients.

This creates a number of problems for organizations (both for performers and for the large customers). The almost complete absence of formal criteria of the customer to the category of large (in fact the only tool that can be used for this purpose is the ABC-analysis, however, it is also not universal) leads to the fact that each organization independently decides which customers are of greatest value. On the one hand, this approach is useful because it allows you to consider the specifics of both the organization and the market in which it operates. But, on the other hand, often such decisions are made intuitively, which leads to the risk of errors.

In addition, it is obvious that even large clients vary in the degree of its importance to the organization. However, the absence of formal criteria for the selection of large customers from the General mass of partners entails, in turn, the impossibility of dividing larger customer categories. Finally, not only the volume of purchases


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often determines the importance of the customer to the organization. For example, there are image customers that generate relatively little revenue, but are important for building the reputation of the company (Sgueo 2016).

The vagueness of the criteria for the selection of large customers leads to the fact that may be a mixture of customers, the significance of which for an organization is determined by different reasons within the same category. The above problems create inconvenience for the organization, since they hinder her to effectively manage the relationship with customers.

As for the methodological apparatus relationship management with large customers, it currently is almost completely absent – in contrast to the methodical apparatus, aimed at servicing the needs of such customers. Customers have at their disposal well-developed tools for: - making decisions on whether to hire an external contractor, selecting the best service provider for execution of your order, risk assessment, cooperation with the operator, establishing relationships with them, assess performance and economic results from cooperation with it, etc. Operators (suppliers, contractors) such a methodological framework is not. It is interesting to note that a similar situation holds in the issue of developing a legal framework to protect the interests of providers. If you have a large number of acts as normative, and theoretical and applied literature devoted to the protection of customer's interests, we were able to find only one paper, which examined the issue of protecting the interests of the contractor.

Such neglect the interests of the contractor, probably due to the implicit assumption that the relationship ‘customer-client’ the greatest risks lie, it is the customer, and for this reason it is necessary to protect against risks, including through the development of need to manage relationships with external operator methodology. Perhaps part of the ‘blame’ and dominant in the modern market-oriented approach, where the main priority of the contractor is considered the customer satisfaction. Or, more precisely, it is considered that the best interests of the client in the interests of the customer (in this case a natural tension between the aspirations of the customer and the customer is not taken into account). Finally, another reason may be that the role of a big customer is often a state which (at least formally) accountable to the public and must demonstrate that the interests of both the state and society in cooperation with the private contractors (often have a reputation structures that maximize their profit and neglecting thus the public interest) was not violated.

All of the above assumes as a priority the development of methodological tools for the protection of the interests of the state (as the customer). But the experience of the state is not always applicable in economic practice. In this situation, the contractor assumes greater risks and are often forced to resort to unfair measures to protect their interests (from corruption to forced renegotiation of a contract on more favorable terms), which ultimately disadvantageous for the customer, and it creates additional risks (or, more precisely, leads to an increase of the risks which the customer would like to avoid swiping the selection of external contractors) (Das 2016).

Thus, the development of methodological tools, which would allow the contractor (vendor, operator) to effectively manage relationships with large customers, serves the interests of both the contractor's and its customers, because it allows to make relations between them more equal, transparent and predictable. For this reason, we believe it is necessary to clarify the definition of large customers, divide them into categories, and describe the risks associated with cooperation with them. First of all, in our opinion, it is necessary to distinguish between situations in which the company cooperates with large customers. You can talk about the two main types of such situations.

In the first case, the company cooperates with the client on a long-term basis, regularly supplying him with the necessary goods and services. An example of such cooperation may be a relationship between a food manufacturer and a large retail distribution network; the importance of the customer to the supplier due to its contribution to the generation of revenue.

The termination of relations with such customer is a force majeure (even with the limited duration of the contract, the supplier hopes that it will be extended for a new term) and leads to a significant reduction in the profitability of the provider (but usually not threatening its existence, since it works with other clients). To replace ‘dropped out’ of the customer is difficult, since potential customers already bound by contracts with their own suppliers, and although may be willing to make occasional purchases from a new partner, but does not seek (at least in the short term) to long-term cooperation and large purchases.

For this reason, when using this model, the supplier usually tries not to excessively increase the share of a particular buyer in his turnover above a certain limit, as increasing this share to grow and possible risks in case of a breakup. The customer selection to the customer to carry out necessary no appeal the customer actually is determined by the size of the orders he is ready to place on a regular basis (Kraeger 2017).


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In the second case, the organization performs large orders on an ad hoc basis, and each time has partnered with a limited number of clients, each of which is large (in the limit of the organization within a certain period of time serves only one customer, directing all its resources to meet its needs). A typical example of this is the construction contractor on large projects. Another example may be a modular company, which generates one-time production structure according to the design principle for a specific order. Feature of this model is that, although cooperation with a major customer is important to the organization (and the share of this customer in the turnover of the supplier during the period of cooperation can be much larger than the share of large clients in the first model), but the abandonment is scheduled, and is not force majeure. In this market there are other customers who can replace the retired (but only for some time required to locate and contract with alternative customers, the revenue provider may significantly decrease).

For this reason, the vendor usually does not impose restrictions on the share of a specific customer in their portfolio, since the termination of the relationship with him in the future is planned and does not increase risks for the organization. However, the unplanned rupture of relations with such customer or its failure to fulfill its obligations to the supplier creates significant risks – even bankruptcy of the contractor. Because of this, the operator should carefully approach the selection of potential customers.

From the point of view of the content of our research indicate that the first model involves routine interaction (supply standard goods or services based on established business processes), whereas in the second model, a high proportion of non-standard component (since the large customer needs a result that fully complies with his request, and achieving this result implies the Commission by a custom action) (Boesso et al. 2017).

Thus, we can say that the hallmark of a major customer is not the size of his contribution to the formation of the revenue of the organization, although related, but not equivalent to this index, the criterion of the level of risk, which entails the rupture of relations with large customers. More significant than this criterion, the consumer, the greater the need of the organization in stock management strategy relationship with him.

However, we believe it is possible to break large consumers into two groups in accordance with the considerations done above, namely, large customers (routine interaction) and large customers (in collaboration with the represented a significant proportion of the custom component). However, we believe that the preceding assertion of strategy of the termination of the relationship can be developed.

In our opinion, when interacting with large clients, the main attention should be paid to strategies for the management of recurrent relations (but, of course, the organization should also have an exit strategy from the relationship), whereas cooperation with major customers is a high priority to the management of all stages of interaction. In other words, the organization must have a strategy of entering into relationships strategy for the management of current relationships and strategy for the termination of the relationship. 4. The Institutional Training Organizations to Non-Profit Operation Of course, large customers and large customers represent two distinct poles, but in practice, you can probably talk about the continuum of ‘major customer a major customer’ and the existence of a large number of transitional forms of major consumers within this continuum.

In addition, customers on non-standard projects can be transformed into customers for routine interaction. A good example of such transformation can be, for example, cooperation between the public customer and the private operator under a public-private partnership (PPP) for creation of infrastructure facilities. First, the operator builds infrastructure (and at this time the government acts as a big customer), and then ensures its management in the interests of the state and society (at this stage the state is already a major client). An example of this carried out in Russia the project is the Western high-speed diameter toll road in Saint Petersburg.

However, the contrast between large customers and large customers allows you to split large consumers into two groups, each of which requires specific management instrumentation relations. In accordance with the objectives of our study below we will consider only the problems of management of relations of the organization with major customers. Characteristic features of large customers are (Curtis et al. 2018):

§ high bargaining power. Hosted such customers and contracts will generate a large cash flow for a contractor for quite a long time, while there are such orders relatively infrequently. This means that, after losing a tender for the execution of the order, the executor is likely to remain without income for a long period, whereby the customer can ‘push’ the contractor to achieve from it the most favorable conditions, whereas the pressure levers return to the customer the contractor is often not available;

§ high transaction costs of the contract. Participation in the tender requires the contractor significant costs (preparation of tender documentation, security Deposit, conducting preliminary negotiations with potential subcontractors, etc.), and these costs may not be recouped if the tender is lost. In


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some cases, it seems to us that for the operator it is advisable to participate in the tender to assess their chances to win, not to lose time and money to prepare for the tender, which obviously will be played by the performer;

§ factor, is closely associated with the first two, and, unfortunately, evident in Russia – high level of corruption (resulting from the larger bargaining power of the customer and based on this the considerable power of decision-makers about the winner in the tender), leading to increased transaction costs of the contractor;

§ high level risks for the contractor in case of failure of customer to perform its obligations under the contract, or, more broadly, changes of the order parameters. Since the order a significant cost, and occupies a large share in the total turnover of the operator, the failure to pay entails substantial losses and may lead to bankruptcy of the operator (that is, incurring significant costs to the execution of the order, is deprived of the possibility to compensate for them).

Note that refusal of payment may occur not only because of the dishonesty of the customer, but also because of the prohibition of payment for services of the operator imposed by the authorities. In particular, there are examples of when the contractor received the order after the payment of bribes to decision makers about the victory in the tender, and then to include the bribe at the cost of their services, could not obtain money from the customer after the order, as investigative test showed a significant excess of the cost of the order.

Regarding the change of the order parameters, it can also lead to losses for the company due to the fact that the increased cost of the work, and the customer refuses to compensate (same problem faced one of the building contractors of the Sochi Olympics NPO ‘Mostovik’ whose costs are much higher than expected due to difficult geological conditions, which were under construction; significant reputational benefit from cooperation. The presence of the operator's portfolio includes successfully implemented significant projects significantly increases the chances of this operator on the conclusion of contracts on implementation of similar projects with the same customers and new partners. On the contrary, the failure of the project (even through the fault of the customer who, for example, because of any reasons, refused to implement it) has a negative impact on the reputation of the operator and may make him an outsider on future tenders.

These special features of cooperation with large customers pose a number of specific risks for contractor's (missing in cooperation with major clients). This means that for the performer it is impractical to attempt to establish relations with all the potential large customers (i.e., to participate in all tenders for the execution of the order, etc.) – on the contrary, it is necessary to carefully select prospective customers.

This is also an important difference between cooperation with large customers – the operator should not simply try to offer their services to all potential customers, it is necessary to select the most promising of them, otherwise he may assume excessive risks. Without such a selection system risk management the contractor may not be completed. However, as our experience shows, this methodological approach to building relationships with major customers while not widely received. Operators (performers, providers) participate in tenders and accept the obligation to the customer without assessing the possible risks of cooperation with him (or assessing them intuitively, without a thorough analysis based on formal methods). This is partly due to the fact that often the most attractive places orders, the state, cooperation with which, paradoxically, Russia is associated with the highest risk - that, in particular, demonstrated the example above with NGOs ‘Mostovik’ (Moutchnik 2016).

In this situation, an adequate assessment of risks can result in denial from participation in public tenders, i.e., the voluntary renunciation of the most attractive orders, which for many companies is unacceptable (however, the greatest stability at the same time demonstrate the company refuses from participation in landmark public projects). In other words, the performers (contractors) voluntarily assume high risks (without assessing them quantitatively, but being aware of their existence) to maximize their own profits.

Another reason may be the lack of methodological tools to assess the reliability of the customer (as mentioned above, in the present methodical apparatus, aimed at protecting the interests of the contractor, is virtually absent). Thus, there is an urgent need to develop such tools. You can gently suggest that of those businesses that bear the high risks of cooperation with the customer (primarily government), some does it because they can't determine how high these risks. In the presence of methodological tools for assessment of risks of the companies likely would refuse to participate in such projects. Everything said above allows to draw the following conclusions, summarizing the results of studies described in this paragraph:

§ large consumers can be divided into two groups (large customers and large customers) as opposed to each other of the nature of cooperation and its duration;

§ cooperation with major customers has a number of distinctive features that can create significant risks for the contractor;


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§ in contrast to the cooperation with major clients, establishing relationships with large customers should be based on careful assessment of benefits and risks from such cooperation. In other words, the contractor must screen potential customers to minimize their risks;

§ in our country such selection is practically non-existent, largely due to the lack of methodological tools for the evaluation of the customer. This causes the high relevance of the problem of developing such tools.

Conclusions The experience and results obtained during the research work, it is possible to apply any of the organizations working in all sectors of the modern economy. Of particular interest, this approach will cause companies with large staff (of one hundred or more persons) involved in operating or project activities. Using the method of the organization activity based on typing of processes, the company is able to save money on training employees with new knowledge, because these processes are detailed to the familiar and user-friendly stages, and the adaptation of employees to new processes takes place in a comfortable, familiar, and friendly manner.

Algorithmization business processes available for automation, which, in turn, is an effective tool for the management of business processes in General, and design risks in particular. A promising further direction of research is the introduction of the automated system of collection published information on the Internet about tenders and automated pre-scoring the found ads for the purpose of screening those that obviously do not meet the requirements of the contractor. The same ads that have been pre-scoring will come for further consideration to the division of marketing and sales. The introduction of such a system would allow to fully routing service part of the processes associated with finding customers, increase the number of processed applications and improve the quality of decisions and reduce the costs of those decisions through the introduction of automation.

Prospects for the use of management tools that uses the sample model business processes, offer lots of new opportunities. Even despite the fact that the cost of introducing the author's approach can be substantial, the possibilities that are open to organizations for developing and improving the effectiveness of management override many disadvantages and costs associated with the introduction of new managerial technologies in practice of management of organizations. References [1] Ávila, L., and Amorim, M. 2016. Service Operations Decisions in Hybrid Organizations: Towards a Research

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[2] Boesso, G., Cerbioni, F., Menini, A., and Parbonetti, A. 2017. The Role of the Board in Shaping Foundations’ Strategy: An Empirical Study. Journal of Management & Governance 21: 375–97. https://doi.org/10.1007/s10997-016-9348-2.

[3] Chang, Y.S. 2018. Korean Women Leaders in the NGO Sector. Korean Women in Leadership. In: Cho, Y. and McLean, G.N. (Eds.). Springer International Publishing. https://doi.org/10.1007/978-3-319-64271-0_12.

[4] Chiang Hsieh, L-H., and Noonan, D. 2017. Strategic Behavior in Certifying Green Buildings: An Inquiry of the Non-Building Performance Value. Environmental Management 60: 231–42. https://doi.org/10.1007/s00267-017-0869-5.

[5] Curtis, S.A., Greentree, V., Baas, W., and Cartwright, B. 2018. Supporting Military Families: Learning from Our Past to Create a New Future in Business. A Battle Plan for Supporting Military Families: Lessons for the Leaders of Tomorrow. In: Hughes-Kirchubel, L., Wadsworth, S.McD. and Riggs, D.S. Springer International Publishing. https://doi.org/10.1007/978-3-319-68984-5_8.

[6] D’Anselmi, P., Chymis, A., and Di Bitetto, M. 2017. Small Organizations Subject to Competition. Unknown Values and Stakeholders: The Pro-Business Outcome and the Role of Competition. Springer International Publishing. https://doi.org/10.1007/978-3-319-32591-0_4.

[7] Das, S. 2016. Certification Under Oligopolistic Competition. Environmental and Resource Economics 65: 251–71. https://doi.org/10.1007/s10640-015-9903-3.

[8] Dato-on, M.C., and Keller E.W. 2017. The Applicability of Market-Centered Strategies and Tactics to Nonprofit Organizations in Emerging Markets: An Exploration.The Customer Is NOT Always Right?


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[9] Defourny, J., and Nyssens, M. 2017. Fundamentals for an International Typology of Social Enterprise Models. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations 28: 2469–97. https://doi.org/10.1007/s11266-017-9884-7.

[10] Forcada, O., Sert, S., Soldevila, V., and Vidali, F. 2017. Surplus Food Redistribution: Best Practices from European Countries.Foodsaving in Europe: At the Crossroad of Social Innovation. In: Baglioni, S.,Calò, F.,Garrone, P. and Mario Molteni, M. (Eds.). Springer International Publishing. https://doi.org/10.1007/978-3-319-56555-2_5.

[11] Haddad, T. 2017. Analysing State-Civil Society Associations Relationship: The Case of Lebanon. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations 28: 1742–61. https://doi.org/10.1007/s11266-016-9788-y.

[12] Johnsen, C.G. 2017. Who’s Afraid of Organization? Concepts, Process and Identity Thinking. Philosophy of Management. https://doi.org/10.1007/s40926-017-0079-5.

[13] Kontos, G. 2016. Designing and Implementing a Unique Website Design Project in an Undergraduate Course. TechTrends 60: 154–59. https://doi.org/10.1007/s11528-016-0027-6.

[14] Kraeger, P. 2017. Socioconomers: New Organizational Actors in Hybrid Corporations. New Dimensions in Community Well-Being. In: Kraeger, P.,Cloutier, S. and Talmage, C. Springer International Publishing. https://doi.org/10.1007/978-3-319-55408-2_10.

[15] Liston-Heyes, C., Hall, P.V., Jevtovic, N., and Elson, P.R. 2017. Canadian Social Enterprises: Who Gets the Non-Earned Income? VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations 28: 2546–68. https://doi.org/10.1007/s11266-016-9787-z.

[16] McClintock, N., and Simpson, M. 2017. Stacking Functions: Identifying Motivational Frames Guiding Urban Agriculture Organizations and Businesses in the United States and Canada. Agriculture and Human Values. https://doi.org/10.1007/s10460-017-9784-x.

[17] Moutchnik, A. 2016. Environmental and Quality Management Systems and Standards of Churches and Religious Organizations. UmweltWirtschaftsForum 24: 409–16. https://doi.org/10.1007/s00550-016-0436-1.

[18] Reich-Graefe, R. 2016. Intermediation in Intermediation: Triple Helix Innovation and Intermediary Legal Organisation.Triple Helix 3: 10. https://doi.org/10.1186/s40604-016-0041-x.

[19] Sgueo, G. 2016. A Framework for Interactions Between National, European and Global Administrative Systems of Law. Beyond Networks - Interlocutory Coalitions, the European and Global Legal Orders. Springer International Publishing. https://doi.org/10.1007/978-3-319-28875-8_1.

[20] Thakuriah, P. (Vonu), Dirks, L., and Keita, Y.M. 2017. Digital Infomediaries and Civic Hacking in Emerging Urban Data Initiatives. Seeing Cities Through Big Data: Research, Methods and Applications in Urban Informatics.In:Thakuriah, P., Tilahun, N. and Zellner, M. Springer International Publishing. https://doi.org/10.1007/978-3-319-40902-3_11.

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