Peculiarities of development of the housing and communal market in Ukraine and Eastern Europe. E-Book

Anna Konyev

• Herausgeber: tredition
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2024

Seitenzahl: 527

Beschreibung

The book deals with the peculiarities of housing and communal market development in Ukraine and Eastern Europe. The author also considers the theoretical foundations of housing and communal services management. The peculiarities of enterprise management in the market of housing and communal services in the period of reforming the industry (European experience), as well as modern trends in the management of personnel development in the field of housing and communal services in the changing VUCA-environment are studied. The stages of development of corporate real estate management in Europe are studied. The practical aspect of management of housing and communal services (experience of Ukraine and the European Union countries) is presented by the author.

Leseprobe

Anna Konyev

Peculiarities of development of the housing and communal market in Ukraine and Eastern Europe.

© 2024 Anna Konyev

Verlag und Druck: tredition GmbH, Halenreie 40-44, 22359 Hamburg

ISBN

Softcover:

978-3-384-09624-1

Hardcover:

978-3-384-09625-8

E-Book:

978-3-384-09626-5

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Contents

Cover

Title Page

Copyright

Introduction

List of Figures

List of Tables

List of Abbreviations

Section 1: Theoretical Basis of Housing and Utilities Management.

1.1. European experience of enterprise management in the market of housing and communal services in the period of reforming the sector.

1.2. Current trends in personnel development management in the field of housing and communal services in a changing VUCA environment.

1.3. Reforming the sector of housing and communal services in Ukraine based on the study of mental models of its participants.

1.4. Innovations in the field of public utilities in Ukraine.

1.5. Peculiarities of the management of housing and public utilities under VUCA-reality conditions.

1.6. Management of housing and communal services in Ukraine.

1.7. Foreign experience activities of homeowner’s association.

Section 2. Methodological Support of Housing and Communal Services Management.

2.1. Development of corporate-real-estate-management in Europe

2.2. Selection of the optimal model of management of housing and communal facilities based on foreign experience.

2.3. Improving the quality of housing and communal services in Ukraine.

2.4. Improvement of partnership relations between the managing organization and the owners of premises in an apartment building.

2.5. Methods for assessing the effectiveness of innovative projects in the housing and communal services of Ukraine in the VUCA-world.

2.6. Improving the effectiveness of management of the enterprise housing and communal services in Ukraine based on the study of mental models of its participants.

2.7. Improving the quality of services of housing and communal services management companies in Ukraine based on the application of cognitive modeling methodology.

2.8. "Housing policy" in the countries of Europe.

Section 3. Practical Aspect of Housing and Communal Services Management (Experience of Ukraine and European Union Countries).

3.1. Mechanisms for improving the quality of educational services in training personnel for the housing and utility sector in Ukraine based on the European experience.

3.2. Impact of state support mechanisms on housing development in Ukraine and the Czech Republic.

3.3. Project management in housing and communal services in Ukraine (European experience).

3.4. Motivation of housing and communal services employees in the period of industry 4.0 development in the VUCA world.

3.5. Leasing with the application of the mechanism of public-private partnership in the housing and communal services of Ukraine.

3.6. Public-private partnership as a mechanism for attracting investment in the housing and communal sphere.

Summary and Analysis

References

Peculiarities of development of the housing and communal market in Ukraine and Eastern Europe.

Cover

Title Page

Copyright

Introduction

Section 1: Theoretical Basis of Housing and Utilities Management.

Section 3. Practical Aspect of Housing and Communal Services Management (Experience of Ukraine and European Union Countries).

Peculiarities of development of the housing and communal market in Ukraine and Eastern Europe.

Cover

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Introduction.

For more than fifteen years, Ukraine has been undergoing global market transformations, which have affected all spheres of the national economy, both tangible and intangible - industry, agriculture, science, education, and defense. However, housing, and communal services, unfortunately, remain one of the most backward in development and low-efficiency sectors of the economy: with huge expenditures of human, financial and material resources, the quality of housing and communal services remains unsatisfactory. But this is one of the most significant and important sectors, on the condition of which the quality of life of the population of the whole country largely depends.

In the overall process of reforming the economy of Ukraine the problem of reforming the housing and communal services occupies a special place. Firstly, it is one of the largest sectors of the national economy, and secondly, this industry is the most socially important. If mistakes in reforming, for example, the coal industry, will not affect directly, but indirectly and after a certain period, then any mistake in the reform of the housing and utilities sector will cause an immediate negative reaction up to a social explosion, fraught with the resignation of the government and destabilization of the political situation. Even though reforming the housing and utilities sector is currently a priority for the Ukrainian economy, most of the reform measures are aimed more at maintaining the current performance of the sector than at its further development and improvement.

Housing and communal services in Ukraine are in a state of severe crisis, as evidenced by the high degree of dissatisfaction of Ukrainian citizens, turning into housing and communal riots. Reforming the housing and communal services requires a comprehensive approach, systematic measures to improve the efficiency of its functioning. One of the main ways of transformation is a cardinal change in the system of housing and communal services, i.e., ways of management of residential apartment buildings.

The domestic practice of residential building management has not yet shown its efficiency and functionality; besides, the legislative base does not provide clear and unambiguous explanations on the issue of management of apartment buildings. To solve problems related to the management of housing stock, it is advisable to turn to foreign experience, which familiarizes the reader with the most advanced knowledge in the management of apartment buildings.

Summarizing all the variety of theoretical knowledge and practical experience of housing stock management in developed foreign countries, the author of the book proposed the directions of reforming the process of management of apartment buildings in Ukraine and ways to develop the housing and communal market of Eastern European countries.

For practitioners and students alike, the business management methods currently being discussed in real estate management are explained in detail and supplemented with innovative recommendations. The book is intended as a supplement to the comprehensive guidebooks published about facility management, which, in contrast to the financial and controlling-oriented perspective, focus more on business management and technology.

The author would like to thank Olena Dolgalova (Doctor of Sciences in Public Administration, Professor, Head of the Management Department, Donbas National Academy of Civil Engineering and Architecture, Ukraine) for her active cooperation in preparing and reviewing this book.

List of figures.

Figure 1: The model of management of development of housing and utilities personnel in the conditions of "lean management" in VUCA - environment

Figure 2: "Portfolio" of managerial competencies of managers of housing and communal services organizations based on the principles of "lean management" in VUCA environment

Figure 3: Mental models and principles of perception

Figure 4: Scheme of personnel training in the housing and utilities sector

Figure 5: Structural model of innovation management in the system of housing and communal services

Figure 6: Scheme of entrepreneurial structure of management of housing and communal services

Figure 7: Structure diagram of the IAS MHCS information model

Figure 8: Mechanism of interaction between public authorities, civil society institutions and business

Figure 9: Basic concept of modern real estate management

Figure 10: System of coordination of the quality of services in the housing and communal services of Ukraine

Figure 11: Model of service quality in housing and communal services in Ukraine (1-5 - possible inconsistencies)

Figure 12: Solving the problem by dynamic programming method

Figure 13: The housing sector as a consumer of innovative goods and services of housing and communal services

Figure 14: Structure of the innovative climate in the housing sector

Figure 15: Approaches to efficiency research

Figure 16: Classification of performance evaluation objects

Figure 17: Prospective directions for the development of approaches to assessing the effectiveness of innovative projects

Figure 18: The framework of the cognitive hexagon

Figure 19: Hofstede dimensions of national culture, Ukraine

Figure 20: Interaction of a management company with economic entities in the sphere of housing and communal services in Ukraine

Figure 21: Problem solving scheme using cognitive map

Figure 22: Delimitation of the project development

Figure 23: Tasks of project development

Figure 24: Innovation-oriented focus on improving employee motivation

Figure 25: Importance of innovation-oriented employee motivation

Figure 26: Organizational and economic process of the leasing transaction with the use of the mechanism of public-private partnership for the development of innovative activities in the sphere of housing and communal services:

List of tables.

Table 1: Main problems of the housing and utilities sector and their causes

Table 2: Features of public utility management in Europe

Table 3: Features of business environment models

Table 4: Advantages and disadvantages of transition to cross-functional teams in organizations of housing and communal services

Table 5: The model of training of managers of organizations of housing and communal services, based on the principles of "lean management" in VUCA-environment

Table 6: Indicators for assessing the impact of innovation results on the quality of services in the housing and communal services system

Table 7: Career models

Table 8: Evolution of employee expectations from the 1960s to the present

Table 9: Directions for assessing the quality of utility services

Table 10: Indicators for assessing the quality of utility services

Table 11: Relative indicators of the rating assessment of factor indicators

Table 12: Rating estimates of factor indicators

Table 13: Generalized rating indicators

Table 14: Standardized indicators of rating grades

Table 15: Principles of assessing the effectiveness of investment in innovation

Table 16: Correlation (n Person) between eight-item BZSG (Citizen Scores) and other cultural dimensions, with GDP as controlling variable, in n Countries

Table 17: Sample Information in 37 countries, Subjective Socio-Economic Status (SES) and BZSG

Table 18: Items of the BZSG Scale. Item Zero-Sum Game Belief Scale

Table 19: A measure of "social complexity" from a set of social axioms

Table 20: Correlation between social axioms and behavioral variables

Table 21: Features of residential building management in developed countries.

Table 22: Motivational measures to stimulate personnel to develop and implement innovations at high-tech enterprise

Table 23: Tools for innovation-oriented motivation of employees

Table 24: Advantages for the subjects of leasing transactions with the use of publicprivate partnership mechanism of organizations in the field of housing and communal services)

Table 25: The main partnership mechanisms, common in the world practice. …

Table 26: Features of forms of public-private partnerships in the housing and communal sphere

Table 27: Features Advantages and risks of PPP for local governments and private businesses in the housing and utilities sector

List of abbreviations.

HCS

Housing and communal economy

VVR

Vidomosti Verkhovnaya Rada of Ukraine

MC

Management companies

PPP

Public-private partnership

V

Volatility

U

Uncertainty

C

Complexity

A

Ambiguity

SAS

Social Axioms Questionnaire

EU

Europe’s Union

IAS

Information and analytical management system

PUD

Planning unit developments

HC

Housing cooperatives

HOA

Homeowners’ associations

HCC

Housing construction cooperatives

CREM

Corporate Real Estate Management

ISO

International Organization for Standardization

CVP

Consumer value of products (services)

CP

Cost of products (services)

CRP

Conditional reference supplier

IAS

Information-analytical system

NPV

Net present value of the project

SES

Socio-Economic Status

BZSG

Belief in a Zero-Sum Game

GDP

Gross domestic product

SHP

Structure of Housing Provision

MRD

Ministry of Regional Development

MIT

Ministry of Industry and Trade

NZÚ

Nová zelená úsporám

ETS

Emissions Trading Scheme

ATO

Anti-Terrorist Operation

JFO

Joint Forces Operation

PPP

Public-private partnership

BOT

Build, Operate, Transfer

BOOT

Build, Own, Operate, Transfer

BTO

Build, Transfer, Operate

BOO

Build, Own, Operate

BOMT

Build, Operate, Maintain, Transfer

DBOOT

Design, Build, Own, Operate, Transfer

DBFO

Design, Build, Finance, Operate

resp.

respectively

i.e.

that is

No.

number

Mio.

Million

P.

Page

etc.

and so on

e. g.

for example

Section 1: Theoretical basis of housing and utilities management.

1.1. European experience of enterprise management in the market of housing and communal services in the period of reforming the sector.

Housing and communal economy (HCS) is the most important element of both social and economic sphere of the national economy, a complex multi-branch industrial and technical complex. For Ukraine, the problems of development of housing and communal services are of particular importance due to the high level of depreciation of housing stock, the critical state of utilities infrastructure, low quality of services, high resource loss. All these and other factors for many years determine the social, environmental, political, and other problems of functioning of the complex, and therefore, have a negative impact on the livelihood of the population and the efficiency of the functioning of enterprises, including other industries. Therefore, systematization of the problems of functioning of the housing and utilities sector and the definition of possible prospects for their solution is an urgent issue in modern economic conditions.

For many years, Ukraine has carried out global market reforms, which affected all spheres of the national economy, both material and non-material - industry, agriculture, science, education, etc. Housing and utilities, unfortunately, remain one of the most backward and inefficient sectors of the Ukrainian economy: with the huge expenditure of human, financial and material resources the quality of utilities services is unsatisfactory. But it is one of the most significant and important industries, the state of which is of huge importance on the quality of life of the entire population. In the general process of reforming the Ukrainian economy, the problem of reforming the housing and utilities sector occupies a special place. Firstly, it is one of the largest sectors of the national economy, and secondly, this industry is the most socially important. If mistakes in the reform of, for example, the coal industry, will affect not directly, but indirectly and after a certain period, then any error in the reform of the housing and utilities sector will cause an immediate negative social reaction, destabilization of the political situation and unforeseen economic losses (Lomova, 2012).

Although the reform of the housing and utilities sector is currently a priority for the Ukrainian economy, most of the activities within the framework of the ongoing reform are aimed more at maintaining the current performance of the sector, rather than at its further development and improvement. Ukrainian housing and utilities services are in a state of severe crisis, as evidenced by the high degree of dissatisfaction of citizens, turning into housing and utilities riots. Reforming the housing and utilities services requires a comprehensive approach, systematic measures to improve the efficiency of its functioning. One of the main ways of reforms is to change cardinally the system of providing housing and utilities services, that is, the ways of managing the enterprises of this sector. An important condition for implementing the reform of housing and utilities services in Ukraine is the study of foreign experience of managing and providing housing and utilities services.

This study examines the experience of developing homeowner institutions; public private partnership; advanced training of management personnel working in the industry; market competition in the industry (Kopylov, 2008).

The practice of managing residential buildings in Ukraine has not yet shown its effectiveness and functionality, and the legislative framework of Ukraine does not provide clear and unambiguous explanations on the issue of managing housing and communal services enterprises. To solve problems related to the management of the housing stock, it is advisable to turn to foreign experience, which brings the most advanced knowledge in the field of industry management and regulation of relations between enterprises in the market. It is also necessary to analyze the problems of managing housing and communal services enterprises in the context of industry reform.

Issues of reforming of the sector, management of enterprises, regulation of relations between enterprises, consumers of its services and stakeholders, have long been considered by Ukrainian and foreign researchers, such as M. Lomova, V. Ignatov, S. Kirsanov, A. Kazarova, L. Bezzubko, S. Evseeva, M. Gerasimova, D. Slavata, E. Skridlovska, M. Karel.

Housing policy in Ukraine has undergone radical changes over the past 25 years. Its goals, principles of work, various tools and created, new sources of financing have been revised. Transformation of market conditions of management in this area continues today. Organization and management of housing construction in Ukraine since 2006 is carried out by the Ministry of housing and communal services. At the same time housing issues are divided between two ministries: the first one is responsible for development and implementation of state housing policy and state policy and communal services; the second one is the central body of the government for urban planning and construction. The sources of funding for housing policy in Ukraine are also the regional and local budgets, as well as state programs to support mortgage lending for young families.

In 2008, to improve the efficiency and reliability of the housing and communal services and to ensure its stable development, the Law of Ukraine "National Program of reform and development of housing and communal services" was adopted (Resolution of the Cabinet of Ministers of Ukraine "About the Concept of the Concept of the Development of the System of State Regulation of the Activity of the Subdivisions of Natural Monopolies in the Market of Communal Services". 09.07.2008, N 932. (n.d.)).

In particular, the program was designed to ensure the functioning and dynamic development of housing, safety, and affordability of housing for all segments of the population adequate quality and quantity, stimulating investment in housing construction, elimination of monopolization of construction, reconstruction, and maintenance of housing stock and much more.

Local self-government bodies play a significant role in the process of providing housing and communal services in accordance with the competences established by the Law No. 280/97-VR "On Local Self-Government in Ukraine". The managing subjects in the housing and communal sphere can be a state management organization, homeowner’s associations, or other association of tenants. (Law of Ukraine "On Local Self-Governance in Ukraine". Vidomosti Verkhovnaya Rada of Ukraine (VVR), 1997, No. 24, Art. 170).

In accordance with the Law of Ukraine No. 417-VIII "On peculiarities of exercising the right of ownership in an apartment building", management of an apartment building must provide favorable and safe living conditions for citizens, proper maintenance of common property in an apartment building, addressing issues of the use of said property, as well as providing utility services to citizens living in such building. (The Law of Ukraine "On the Specifics of the Exercise of the Right of Ownership in a Large Apartment Building". Notices of the Verkhovna Rada of Ukraine (VVR) dated 14.05.2015 No. 417-VIII. (n.d.)).

The presence in Ukraine of state programs for the development of the housing and utilities sector indicates that this sector is still centrally regulated by state authorities. As for the role of local governments in the implementation of state regulation in the relevant markets, despite the desire of several municipalities to retain their regulatory functions (mainly in tariff setting), under current conditions local authorities are not able to perform market regulation in the district heating, water supply and wastewater disposal markets for the following reasons:

• local self-governments are owners of the respective enterprises, so as a regulator, they cannot make unbiased decisions with respect to their property;

• local governments, having public utilities at their disposal, are not interested in the emergence of a private operator in the market (for example, in the supply of heat, water supply and sewage disposal, or in the generation of heat energy), which cannot but have an impact on regulation.

• today for the implementation of professional regulation in the markets of district heating, water supply and sanitation, there are not enough trained specialists even for the central regulatory body, not to mention the opportunities for such regulation at the local level.

Housing and communal services include the housing stock and utilities. The housing and utilities management system is built around the basic business processes that represent housing and utilities services to consumers. Housing and communal services are divided into collective and individual services that create a public good. Consumption of housing and communal services is essential as it is aimed at satisfaction of basic physiological needs of the population, which makes it practically impossible to completely refuse their consumption or significantly reduce its volume.

Most residential and non-residential facilities need these services. This leads to a constant demand and allows us to categorize the housing and utilities sector as socially important. During the reform of the housing and utilities sector, which has been going on for more than 25 years, there have been serious institutional transformations in this sphere. However, several unresolved problems and new difficulties have emerged.

Table 1 groups the main problems of the housing and utilities sector and their causes. Consumption of housing and communal services is of an urgent nature, as it is aimed at meeting the basic physiological needs of the population, which makes it practically impossible to completely abandon their consumption, or significantly reduce its volume. Most residential and non-residential facilities need these services. This leads to a constant demand and allows the housing and utilities sector to be categorized as socially important. The economic potential of the housing and utility sector is great.

The housing and utilities sector is an attractive economic sector in many countries. The use of market mechanisms makes investing in the housing and utilities sector profitable. The sphere of housing and communal services is very promising for the development of small business and entrepreneurship. However, to start a business, small businesses need the support of the authorities, including financial support.

Table 1: Main problems of the housing and utilities sector and their causes.

Groups

Problems

Reasons

Material and technical

Physical deterioration of fixed assets of engineering systems of the industry

For decades, worn-out funds have not been replaced due to lack of funding

Presence of dilapidated and emergency housing

Insufficient funding for new construction, inefficient use of budget funds

Financial

Debts of payment of housing and communal services

Insufficient funding for new construction, inefficient use of budget funds

Investment unattractiveness of the industry

Lack of comprehensive plans for the development of municipal infrastructure Lack of government support for small and medium-sized businesses in the industry

Legal

Imperfect legal and regulatory framework

Delays by regional and local governments in adapting legislation to local conditions

Labor

Lack of highly qualified personnel in the industry

Low wages in the industry Insufficient number of educational institutions that train specialists in the industry

The housing and utilities sector accounts for 20% of the total energy consumption, and 64% of enterprises have private and mixed ownership in the market of housing and utilities services. There is a positive experience of attracting small business to the sphere of housing and communal services in Ukraine. Several cities have converted certain services to the full payment by the population, which is attractive to private enterprises. This is especially true for the collection, transportation, and recycling of solid domestic waste. The efficiency of enterprises in the field of housing and utilities services, determined by a set of indicators, which include the quality of their services, resource conservation, effective financial management, etc. is an important element of the development of a modern economy.

In the course of work housing and utilities, enterprises face many difficulties, among which domestic researchers single out problems associated with the provision of quality services in the current economic environment, the lack of competent management, and the low level of legal and professional literacy of both owners and staff, etc. (Evseeva, Gerasimova, 2012). However, the existence of several problems highlighted by domestic researchers often complicates enterprise management in the housing and utilities sector. The main problems faced by managers in the sector include:

• Lack of qualified personnel, both managerial and manual laborers;

• Low level of competition among companies, and a lack of serious control, which often results in an unsatisfactory quality of services;

• Unattractiveness of the sector for private investments due to a long payback period. (Khairullina, Shakirova, Zinnurov, 2014).

The existing approaches to management of housing and utility services abroad basically boil down to the fact that municipal authorities regulate the work of private enterprises and protect the rights of the population and guarantee high- quality and uninterrupted services. In such countries as the USA, Sweden, Finland, Germany, Poland, England management of housing and utilities sector is a kind of business. Management is carried out by management companies, which are remunerated for their work.

The homeowners' association (association or partnership) is responsible for the maintenance of the building to the owners. (Deutsch-Tschechische Industrie- und Handelskammer. Zielmarktanalyse 2020 mit Profilen der Marktakteure. 01.07.2020). Table 2 shows the features of public utility management in Europe. (Kitsay, 2012).

Table 2: Features of public utility management in Europe.

Country

Peculiarities of housing and utilities management

Result

Sweden

Existence of unions or associations of tenants who monitor the quality of housing services. Influence political parties have regional and local branches Existence of two models of payment for services:

Ensuring transparency of management structures and tariffs, suppressing corruption

Country

Peculiarities of housing and utilities management

Result

1. "Discount model" - choosing and paying only for the services that the tenant needs. 2. The "depreciation model" - reduction of fees for services in case of careful handling of the property. Existence of a housing court.

Germany

Each apartment building is managed independently. It has its own "coffers", the number of contributions to which is determined at the general meeting. For cleaning and maintaining cleanliness residents can hire a manager, but his services are paid for additionally. Each apartment owner concludes a contract with a supplier of resources - water, electricity, gas. Heating for each house is autonomous - the construction of a boiler room (boiler room).

Full autonomy of residents, minimizing costs

USA

There is a broad market for highly specialized services in the maintenance and repair of housing and maintenance of engineering networks and facilities. There is a need for highly skilled management and knowledge of the contracting market and technology. Each state has its own routines. Money for utility bills is automatically deducted monthly from the bank account. Housing tax in the U.S. is levied annually and is 13% of the market value of the property.

A highly specialized market for utilities. The absence of rent as such.

England

The existence of only private companies - suppliers of resources. Each resident chooses their own resource provider, and can change them, if necessary, but no more than once a week. Resource providers can be different, for example, one sells electricity during the day and another at night.

Independent sourcing of resources to minimize rent

Country

Peculiarities of housing and utilities management

Result

Poland

The housing and utilities sector is managed by a joint-stock company with 100% state (municipal) capital. All types of public utilities are combined into a single state-owned company. It manages finances, resource production and monitoring. Suppliers of resources may have different forms of ownership.

Providing quality services. Ensuring reliable operation of the housing and utilities sector

Finland

The association of houses into joint-stock companies, 70% are managed by management companies (MC), 30% - independently. The MC is responsible for the daily management under a management contract. The contract contains a list of services, their rates, and conditions of provision. The MC chooses the operating organizations to provide different kinds of services. Operating organizations provide housing and communal services independently or under contracts with specialized firms (repair and construction, landscaping, security, garbage collection, etc.). The operating organization reports annually to the residents on revenues and expenditures. In large cities, utility systems are in municipal ownership. Heating and water supply are centralized. Power plants may be privately owned.

Minimization of costs and application of advanced technologies (e.g., availability of backup oil stations during periods of low temperatures (- 30° C) and the use of secondary heat from homes)

Table 2 shows that abroad the forms of management of housing and communal services are very diverse. From the conclusion of individual contracts of each resident of an apartment house, or all residents of one house with different suppliers of resources, as in England and Germany, to the management of the sphere of housing and communal services with 100% municipal capital as in Poland. Thus, having analyzed the situation with reform of the sphere of housing and communal services in different countries of the world it is possible to note that everywhere there was a privatization of the housing stock. The share of homeowners in the countries of Europe is from 50 to 80 %. As for the United States, the share of homeowners is about 70 percent. If there are owners, there is a market for the provision of public services, which should meet the growing demand for high-quality services from homeowners. In some countries in Europe and especially in Central Europe, the share of tenants is still large. In Scandinavia, this share is between 13-20%. In the U.S. about 30%. There is, however, a gradual tendency towards a decrease in their share. In socially oriented countries and countries of the former socialist camp, there is still municipal ownership of housing. Such housing is found in Sweden and the CE countries. Its share ranges from 3 to 18%. Such housing is mainly used for low-income groups of the population. As for management of housing and provision of housing and communal services, during the reform, it is carried out mainly with the help of management companies and homeowners themselves. And in the countries of Europe preference is given to the latter. Their share is about 70% in Finland.

In all European countries during the reform of the housing and utilities sector there was a sharp increase in tariffs, in Eastern Europe they increased by more than 10 times. In the countries of Western Europe, the growth correlated mainly with the growth of energy prices and inflation and was about 2-3 times. It should be noted that sharp growth of tariffs was observed in the case of state and not always effective regulation. In Western Europe and the United States, tariffs are set in a decentralized manner, mainly by the organizations providing services in the field of housing and public utilities (Brauer, 2003). Many countries use public-private partnerships and concession agreements between private firms and municipal authorities to reform the housing and utilities sector. Concession agreements exist not only in the maintenance of infrastructure, but also in the construction of houses. The British and German models of housing and utilities management are somewhat different from other countries. Here all the systems of life support of the population have been transferred to private hands.

The analysis allowed us to group the common problems of management of housing and communal services in Ukraine and abroad. The solution of these problems will depend on the modernization of existing business processes. In Europe, the management of housing and communal services is regarded as a separate business activity. In this case, the responsibility for the key management decisions in this area is vested in the association of homeowners, who are entitled both to sign a contract with a management company and to independently resolve all issues arising in the operation of housing. This increases the role of personal responsibility of each citizen for the condition of housing. In contrast to Ukraine, where the same attempt was made to delegate the responsibility for maintenance of premises, in most European countries the obligation of citizens to join homeowners' associations simultaneously with the purchase of real estate is legislatively fixed. This also leads to the fact that among contractors there is a growth of companies with highly specialized activities (for example, companies specializing only in the repair of engineering networks), allowing them to provide better services to the population, as well as to reduce costs (Vasilieva, 2006).

In most European countries, such as France, the Czech Republic, Slovakia, etc., management in the field of housing and utilities services is considered a separate type of business activity for which the management organization is paid by the premise's owners, and the liability to the owners for the maintenance of the building is borne by the homeowners' association. It should also be emphasized that the approach to the management of apartment buildings, which is followed by managers in most Western countries, is since the management organization works based on an agreement with the association of homeowners, and not with individual owners. To improve the economic efficiency of activities, service organizations in Eastern Europe have divided into more specialized organizations.

Thus, market development goes in the direction of increasing competition between organizations with the same specialization, for example, maintenance of internal house heating is carried out by one company, maintenance of metering devices on heating systems - by the second company. Accordingly, the manager should know the contractor market, the advantages of the use of various technologies, be familiar with the prices, have different tools for financing, and act as a consultant of homeowners on these issues. The separation of management of apartment buildings into an independent type of activity contributes to the increase of proposals from professional managers and the formation of a competitive market of management services, the development of small and individual entrepreneurship in the field of management of housing.

An important feature of the legal regime of real estate in apartment buildings is that all owners of residential premises, along with the premises they own, own a share of the common property in the apartment building. The law establishes strict requirements for the owner to bear the obligatory common expenses on the maintenance of the common property in the apartment building. The burden of maintenance means not only bearing obligatory expenses, but also the duty of the owner to take measures to ensure safety, security, technical serviceability, and proper sanitary condition of the common property in the apartment building.

The owner must make decisions and take care of the organization of the maintenance of the building. If the house does not meet legally established requirements for the safety and quality of residential real estate, all premises' owners in the house are equally responsible to state supervisory bodies (Lomova, 2012).

In Ukraine, the emergence of housing associations as well as housing management companies largely depends on the policies of local governments. It depends on them, first, whether equal conditions will be created for access to the market of housing services provider for enterprises of different organizational-legal forms of ownership (Kopylov, 2008). Interaction between municipal organizations and private companies can and should be conducted in a way that promotes reasonable competition. For example, when contracting out part of the scope of certain work, the municipal service is forced to enter a competitive struggle with a private company. A positive effect can be achieved if the municipal organization only takes on the role of the developer of the terms of reference and the controller, monitoring compliance with the terms of the contract. However, in this case, the increase in productivity will occur only if the competition among private firms is high and there is no corruption (Vasilieva, 2006). Public-private partnership in various infrastructure spheres has shown its high efficiency, which determines the feasibility of using its models in the process of improving the organizational and legal forms of relations between municipal governments and public utilities. Thus, the experience of other countries shows a variety of forms of management of public infrastructure enterprises, allowing them to rationally distribute responsibilities and risks between the municipal and private businesses. The large-scale and complexity of the solution of economic, social, and other problems of management of housing and utilities services in Ukraine requires a comprehensive approach, the effective use of accumulated foreign experience, and its adaptation to the prevailing socioeconomic and political conditions. Summarizing the diversity of theoretical knowledge and practical experience in the management of housing in developed countries, the following directions for reforming the management of housing and utilities enterprises in Ukraine can be proposed:

• A change in the mentality of homeowners.

They perceive the maintenance of their housing stock as a burden of costs, while in most Western countries, citizens regard the purchase of housing ownership as an investment (investment) and understand maintenance as an activity that ensures the safety and proper condition of the property.

• Transition to highly specialized service of apartment buildings.

In the world practice of management of apartment buildings, the approach where the owners make management decisions within the framework of the association created by them - a legal entity, and the execution of decisions are entrusted to a professional management organization based on the contract is most often used. This approach to the management of apartment buildings can be considered the best because management activities are carried out on a professional level, the quality of services corresponds to the needs and capabilities of homeowners, and the democratic norms of making management decisions by homeowners are respected. Also, an advantage for homeowners when creating a partnership is the possibility to control the spending of their funds (Ignatov, 2004). In Ukraine, it is characteristic that private housing organizations seek to provide the entire range of services for the management, maintenance, and repair of apartment buildings on their own. Such universality of management organizations leads to a significant deterioration in the quality of housing and utilities services.

• Insurance of the activities of management companies.

In most countries management in the field of housing and utilities services is a separate type of business activity that requires risk insurance. The market of housing and utilities services forms requirements to management companies, noncompliance with which makes a company uncompetitive. First, this applies to the insurance by the managing company of its civil and material responsibility arising if improper actions of the manager caused damage to the homeowner's property, which is especially developed in most countries of Europe and America. The introduction of this approach in the legislation of Ukraine will dramatically change the situation with the quality of housing and communal services (Kirsanov, 2011).

• Information openness and transparency of management companies.

The main complaints of Ukrainian citizens to management companies are related to a lack of understanding of what constitutes tariffs for housing and utility services and how the cost of these components is calculated. Many people state regular unreasonable overpricing of tariffs by management companies directly in the payment documents. In this case, the experience of Finland and France, where information technology is an important component of public services, is useful. The collection and processing of information and the interaction of utilities (Brauer, 2003) companies with consumers and government agencies are automatic. In general, the entire process of personal interaction between the consumer and the service provider can take place via the Internet or other information resources (Kazarova, 2015).

Thus, to solve the system problems in the sphere of provision of housing and utilities services in Ukraine, it is useful to study the positive international experience tested over time. At the same time, it is possible to build its unique model of management of multifamily residential buildings, which will be based on the best foreign analogs, but consider the specifics and characteristics of the Ukrainian housing and utilities economy.

Although most enterprise management problems in the housing and utilities sphere must be solved at the legislative level, several points can be implemented by the enterprises already today. For instance, looking for contractors with narrower specialization, simplification of requirements for contractors to participate in tenders, looking for personnel with higher education and considering the personal qualities of the employee, interaction with educational institutions directly to attract potential employees, or formation of a new relationship with entrepreneurs who rent premises in apartment buildings.

1.2. Current trends in personnel development management in the field of housing and communal services in a changing VUCA environment.

Under the conditions of fierce competition, variability of technological and information markets, housing and utilities organizations are forced to constantly review and optimize their processes to optimize costs and increase their efficiency. However, many make the typical mistake: they try to implement organizational changes without first having developed, first a strategic action plan for human resource management, and secondly, without having prepared a comprehensive plan for overcoming personnel resistance to organizational change. Changeability is an integral part of existence in conditions of constant economy of HR-resources. One of the main tactical tasks of modern organizations of housing and communal services, is to improve the system of development and use of personnel in conditions of VUCA environment and the transition to the principles of "lean management" in the sphere of housing and communal services.

The VUCA environment is: V → Volatility; U → Uncertainty; C → Complexity; A → Ambiguity. (Chuhno, 2016)

Production resources of organizations of the housing and utilities sector, especially in the regions, are limited - capital, technology, materials, time. But at the same time any utility company, regardless of its status, has one almost unlimited and very mobile resource - the intellectual potential (capital) of its employees. Sustainability of enterprises of the housing and utilities sector in a constantly changing VUCA environment depends on the ability of top management to motivate, develop, and apply this potential for the benefit of the organization and the employees themselves.

The development of "lean management" in accordance with the orientation on the innovative type is characterized by strengthening the role of scientific knowledge, innovation, information technology and the presence of "lean infrastructure" aimed at the creation and distribution of new mobile knowledge. Assessment of the level and dynamics of innovation activity within individual organizations of the housing and utilities sector makes it possible to determine the real state, trends of change and the level of differentiation of the development of "lean management" technologies in the housing and utilities sector in the changing VUCA-environment. The aim of the research work is to develop a functional model of management system of personnel development, in the sphere of housing and communal services, considering the specifics of human resource management of organizations, in the conditions of "lean management". To recommend project proposals on rationalization of personnel activity when implementing "lean management" in the conditions of a changeable VUCA environment of housing and communal services organizations. The effectiveness of lean technologies used in the management of housing and utilities organizations is characterized by several common indicators such as, first, the level of innovative activity of institutions and, criteria of "lean organizations" in the sphere of housing and utilities. During the analytical part of the study the level of differentiation, as well as the dynamics of these indicators and their sustainability were studied. The methodological basis of the study was based on the construction of trends in dynamic series, as well as methods of structural and comparative analysis. During the development and justification of the model of management of the system of development and personnel training in the housing and utilities sector in the conditions of "lean management" comparative analysis and expert assessment were used.

Until now in scientific circles the problem of studying the world experience of effective management of enterprises of housing and communal services considering the specifics of personnel management of organizations, in conditions of VUCA-environment and its adaptation to the current economic and political conditions in Ukraine remains relevant. Currently, personnel problems are not given proper attention. To solve these problems, it is necessary to use non-standard approaches. And one of such approaches is "lean management". The problems of reformation of the sector of housing and communal services, management of enterprises at the market of housing and communal services, regulation of relations between the enterprises of housing and communal services and personnel training have long been studied by Ukrainian and foreign scientists, among which it is necessary to mention the following works: Collins, J.C., Womack, J.P., Jones, D.T., Bezzubko, L.V., Tretyakova, L.A., Tselyutina, T.V., Friedman M., etc.

Overcoming of the inadequacy of mental models allows increasing the efficiency of analytical activity, relieving the researcher from the false restrictions which do not allow to go beyond the developed representations, or on the contrary will not allow conducting the research based on unreasonable assumptions and postulates. Many famous scientists, including Nobel laureates, have devoted their work to the study of unsubstantiated mental models. For example, in 1979 there was a famous article "Theory of Perspectives: Analysis of Decision-Making under Conditions of Risk" written by D. Kahneman (Nobel Prize winner). D. Kahneman (Nobel Prize in Economics 2002) in co-authorship with a professor of psychology A. Tversky. The authors of this article, which marked the beginning of the so-called behavioral economics, presented the results of experiments in which people were asked to choose between different alternatives.

These experiments proved that people cannot rationally estimate either the magnitude of expected benefits or losses, or their probabilities. The works of the following authors are devoted to the problems of rational decision-making: M. Allais (rational human behavior under conditions of risk), J. von Neumann (utility theory, game theory, and economic behavior), R. Ackoff (decision-making, goaloriented systems), P. Senge (systems thinking), D. Dörner (system dynamic analysis of social systems), etc. Thus, the problem which arises during the formation of competencies necessary for the analytical activity of participants of housing and communal services was defined. As formulated by K. Argyris, the problem is that "people do not always act in accordance with the theories they express, but they always act in accordance with the theories (intellectual models) they use". About analytical activity, the problem is transformed and revived by the fact that mental models are actionable-they shape our actions, influencing the decisions we make. The importance of personnel management problems in the sphere of housing and communal services is undeniable, since it is the quality of services provided and the level of satisfaction of the population that depends on the workers. In modern systems of personnel management, an employee is considered the main and most important resource and value of an enterprise. That is why it is necessary to develop fundamentally new approaches to HR management in the sphere of housing and communal services in a constantly changing VUCA-environment. Proper personnel management in the sphere of housing and communal services is undeniable because it is the quality of services provided, as well as the degree of satisfaction of the population depends on the personnel. At present the problems of management of personnel development in the sphere of housing and communal services in the conditions of changeable VUCA-environment are not given proper attention. To solve these problems, it is necessary to develop proposals for the rationalization of personnel activities in the implementation of "lean management" in a volatile VUCA environment in the sphere of housing and communal services.

The concept of management and behavior of personnel is based on the unwavering desire to eliminate all types of losses (Tretyakova, Tselyutina, Trembach, & Govorukha, 2015); (Womack, Jones, & Roos, 2007). Based on an analysis of the concepts of using "lean management" technologies, recommendations were developed to strengthen organizational behavior, communication channels and information between management levels and develop delegation skills among HR managers in the housing and communal services sector, which also include the possibility of transitioning to the principles of "lean management" for all categories personnel in a VUCA environment.

The new model of development of modern management became the concept of VUCA. This term was proposed by N. Bennett and J. Lemoine as an acronym of the English word’s volatility, uncertainty, complexity, and ambiguity. Indeed, throughout the world there are now several notable trends: an increase in the speed with which changes occur; acceleration of transactions; acceleration of all activities; frequent changes in social interaction strategies and political orientations; constant change; turbulence of current processes in all spheres of activity. (Hodgson, 2003) A comparison of the "old" (20th century) and "new" (21st century) model of the business environment is presented in Table 3.

Table 3: Features of business environment models.

SPOD-world

VUCA-world

Steady

Volatility

Predictable

Uncertainty

Ordinary

Complexity

Definite

Ambiguity

Thus, the VUCA model accurately describes the state of permanent instability, chaos, volatility, and anxiety that is characteristic of the modern economy. Moreover, all these phenomena have become the "new norm" in describing modern management realities. In the VUCA world, economic actors (executives and managers of companies) find it difficult to make decisions, and forecasting tasks are difficult to implement. Any decisions must be made as quickly as possible, otherwise the decision taken not in time will not meet the requirements of the changed external and internal environment of the organization. In addition, the instability, uncertainty, and complexity of the environment greatly increases the risk of obtaining unreliable information or obtaining information not in full. As a result, according to Horney, Posmore and O'Shea (2010), the authors of a popular work in the West, Dynamic Leadership: The Requirement for Business in a VUCA World, in today's world, to succeed, "managers must constantly change people, processes, technologies and structures. This requires flexibility and quick decision making." Accordingly, the VUCA world places new demands on organizations, HR systems and HR managers. The emphasis is on building "smart," evolving management systems. (Best practice in business advisory, counselling, and information services, 2002). There is currently a further shift in the management paradigm worldwide. It is no longer just a transition from the concept of personnel management to the concept of human resources management (HRM), but its transformation into the concept of human capital management (HCM) and human management, which, on the one hand, is aimed at active search and development of talents, on the other - focuses on the humanization of HR-practices and care for the employee of the organization. One of the principles of corporate culture formation within the new managerial paradigm is the concept of "company as a family". The starting point of this approach is the phrase: "a good employee is a healthy and happy employee". The implementation of the "company - family" approach emphasizes paternalism, commonality of group interests of employees, consideration of "life peaks" of employees, care about health and lifestyle of employees, as well as increasing time for interaction of employees with their families. The change of a management paradigm assumes strengthening of attention to development of behaviorist technologies of management of the personnel, individualization and "point adjustment" of most tools of management of the personnel. Also, this factor assumes increased attention of company management to development of new tools and methods of personnel training. (Anderson & Galinsky, 2006)

Globalization of economy, knowledge and technology, internationalization of business reduce the importance of state borders as barriers to the movement of goods, services, capital, and labor and increase international business activity and mobility of modern workers. The needs of the workforce to the conditions and content of work change the holistic perception of labor activity: autonomy and flexibility of work become a priority, especially for young people (Friedman, 1953). This factor increases attention to the creation of a variety of employee mobility programs (from the development of a system of mobile workplaces and special training programs for employees to programs of international internships). An example of the increased attention of personnel management specialists to the development of mobility programs can be the introduction in many foreign companies of a special position - international employee mobility specialist, international diversity management specialist or mobility consultant.

The VUCA world leads to the formation of new types of organizations. There is a transition from the classical model of the company to the model of the "liberated" company. The classical model of the company assumes, firstly, the division into hierarchical levels with concentration of all information at the head, secondly, the formation of a system of departments and divisions, employees of which unite knowledge in a certain area. That is, employees involved in the production of products receive minimal access to information and are subordinate to the decisions made "at the top". In contrast to this type of company, the "liberated company" model assumes that all employees, including those at the lowest levels of the management hierarchy and those engaged in physical labor, can propose decisions and projects for the entire company.

In such companies, authoritarianism is virtually absent, and all decisions are made collectively. Employees in a "liberated company" are free and responsible for all actions that they believe will be necessary and best for the development of their organization. In liberated companies, self-organization and employee selfdevelopment occurs. On the other hand, the new business environment involves more active formation of a network of cross-functional teams.

A cross-functional team is a group of employees from different functional departments of a company focused on solving a specific problem and working as a team to improve system innovation, solve important problems, and create synergies in management. In cross-functional teams, there is a transparent exchange of information and a transition from team to team depending on the problem to be solved. In such teams, people are rewarded for their skills, not their positions (Becchetti, Di Giacomo, & Pinnacchio, 2008).

The advantages and disadvantages of cross-functional interaction are presented in Table 4. The cross-functional approach changes traditional ideas about the role and direction of an HR specialist. So, because of these reasons, the managers of many companies are increasingly faced with the fact that the usual approaches and technologies of personnel management no longer demonstrate the expected effectiveness. Under these conditions, increasing the efficiency of company functioning requires both the development and implementation of new personneloriented approaches to personnel management, new technologies and tools, and the modernization and adaptation of the already used tools for making and implementing managerial decisions. Results of management of innovation potential in many respects depend on efficiency of managerial activity which should be correctly modeled and provide formation and realization of the best variant of its development and competitive advantages. Among the directions of increasing the effectiveness of management of the development of personnel in the sphere of housing and communal services, based on the application of low-cost measures, should be noted the optimization of the system of administrative management through the standardization and integration of management systems, the application of a progressive model of competencies of employees of the management level to form a system of management of organizational behavior (Tretyakova, Tselyutina, Trembach, & Govorukha, 2015); (Kaplan, Norton, & others, 2005).

Table 4: Advantages and disadvantages of transition to cross-functional teams in organizations of housing and communal services.

Advantages

Disadvantages

Flexibility and adaptability to the VUCA environment

The chaos and discontent caused by the double-subordination system

Efficient use of resources

The complexity of practical implementation and implementation

Sharing knowledge and experience

Possibility of contradictions and conflicts between groups of employees

Overcoming intraorganizational barriers

Difficulties with the effective use of qualified and promising professionals

Ease of development and unified organizational policy

Cognitive overload (increased communication channels, emails, meetings)

Lean philosophy of continuous improvement offers an alternative to large, longterm, developed and conducted "from above" reorganizations - less global, but continuous improvements which not only change the situation for the better, but also transfer the opportunity to positively influence conditions and results of their work to employees themselves, turning them from passive performers into active participants (generators of ideas and rational proposals) of management processes (Anderson & Galinsky, 2006); (Von Krogh, Ichijo, Nonaka, & others, 2000). The study identifies the main directions - from the start of the project to the formation of lean culture: The first direction is people development: social responsibility, leadership, teamwork, leadership standardization, visualization, system of continuous improvement, training system, identifying, and solving problems, mutual trust and respect, safety, and labor (Grossman, 2000), culture of intraorganizational communication, delegation of authority, holding meetings and others. When solving the problem of increasing the efficiency and competitiveness of their development, housing and utilities organizations need to focus on the following basic elements, while maintaining the importance of the fundamental, strategic basis - personnel (Fig. 1).

Figure 1: The model of management of development of housing and utilities personnel in the conditions of "lean management" in VUCA - environment.

The second direction is process development: diagnostics, visual management and workplace organization, standardized work, building quality into the process, statistical methods (Hambleton, 2007), efficient logistics, efficiency calculation (Mayo, 2016). As a result of the study, the main elements of the developed model for increasing the efficiency of managers of housing and communal services organizations were characterized based on the principles of "lean management", consulting seminars and trainings (Table 5).

Table 5: The model of training of managers of organizations of housing and communal services, based on the principles of "lean management" in VUCA-environment.

Development of lean management processes

Project consulting (achieving the goal within the agreed timeline and budget).

Sustainability certification for managers and professionals.