Economics and management of enterprises

Readiness for changes among managers of mining and metallurgy industry: a case of Kazakhstan

Economic Annals-XXI

Economic Annals-ХХI: Volume 177, Issue 5-6, Pages: 101-113

Citation information:
Sikhimbayev, M., Shugаiроvа, Zh., Orynbassarova, Ye., & Dzhazykbaeva, B. (2019). Readiness for changes among managers of mining and metallurgy industry: a case of Kazakhstan. Economic Annals-XXI, 177(5-6), 101-113. doi: https://doi.org/10.21003/ea.V177-09

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Muratbay Sikhimbayev
D.Sc. (Economics),
Professor,
Karaganda Economic University of Kazpotrebsoyuz
15-17 Nurken Abdirova Ave., Karaganda 100017, Republic оf Kаzаkhstаn
smurat@yandex.ru
ORCID ID: https://orcid.org/0000-0002-8763-6145 

Zhаnnа Shugаiроvа
PhD Student (Economics),
Kаrаgаndа Ecоnомic University оf Kаzроtrebsоyuz
9 Аkаdemicheskаyа Str., Kаrаgаndа, 100009, Republic оf Kаzаkhstаn
zhanna.shugaipova@mail.ru
ORCID ID: https://orcid.org/0000-0003-4486-9712 

Yerkenazym Orynbassarova
PhD (Economics),
Head of the Department of Management and Innovation,
Kаrаgаndа Ecоnомic University оf Kаzроtrebsоyuz
9 Аkаdemicheskаyа Str., Kаrаgаndа, 100009, Republic оf Kаzаkhstаn
erke.08@mail.ru
ORCID ID: https://orcid.org/0000-0002-5577-6434 

Baldyrgan Dzhazykbaeva
PhD (Economics),
Associate Professor,
Department of Management and Innovation,
Kаrаgаndа Ecоnомic University оf Kаzроtrebsоyuz
9 Аkаdemicheskаyа Str., Kаrаgаndа, 100009, Republic оf Kаzаkhstаn
baldirgan_keu@mail.ru
ORCID ID: https://orcid.org/0000-0003-0738-2526 

Readiness for changes among managers of mining and metallurgy industry: a case of Kazakhstan

Abstract. The object of the study in this article is iron ore mining enterprises of the mineral complex of Kazakhstan. Based on the conceptual provisions of the development of the mining industry of mineral resources of the country, we identified current priorities and constraints to improve the management system of mining and metallurgical enterprises. Also, we have identified the modern world trends in the management of mineral resource companies, which are focused on ensuring sustainable development, including minimal impact on the environment and ensuring social guarantees of companies’ personnel. On the basis of the corporate survey of managers of various levels of mining and metallurgical companies, the authors assess the level of readiness of management to carry out appropriate improvements in their companies. The questionnaire was a symbiosis of corporate and expert surveys, implementing the task of obtaining information on both the internal situation and the views of managers as experts in the field of core business represented by managers of LLP «Orken» which is a subsidiary of the largest miner in Kazakhstan – JSC «ArcelorMittal Temirtau».

The subject of the study was the system of representations and installations of managers of mining and metallurgical company on the given parameters of measurement. The practical objectives of the study were to determine the general level of professional competence of managers of mining and metallurgical companies, to identify the main problem areas of process management in mining and metallurgical companies; to develop practical recommendations aimed at correcting the situation. According to the results of the study, the main problem is established from the point of view of the employees of the company. The structure of the organisation cannot be characterised as absolutely optimal and functional. One of the main reasons for the low functionality of the of the company’s structure, according to the opinions of its managers, is the lack of clear qualification requirements for the functionality of the management sphere, and as a result of this a weak staff. The management of the company in its main activity does not ensure compliance with the requirements of sustainable development, and this acts as a natural constraint on the competitiveness of the enterprise and its compliance with modern global trends in the management of mining and metallurgical companies. It was determined that the existing management system of the mining and metallurgical companies of Kazakhstan is poorly prepared for possible changes in the external environment, and it requires the introduction of innovative technologies for managing production and logistics processes.

Keywords: Management of Mining and Metallurgical Enterprise; Corporate Survey of Managers; Implementation of Management Technology; Duplication of Functions of Managers in Mining Industry

JEL Classifications: M14; M15

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V177-09

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Received 17.06.2019
Received in revised form 21.08.2019
Accepted 25.08.2019
Available online 18.09.2019

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