Ukrlandfarming decentralized its management

Natalia Romanenko, Head of Personnel at Ukrlandfarming
Photo by: Latifundist.com

In the year 2018, Ukrlandfarming performed a complete decentralization in the company's management. This was informed by Natalia Romanenko, Head of Personnel at Ukrlandfarming, in the framework of the business breakfast with HR directors held by Latifundist.com in December 2018.

The company has transformed its business processes, planning, management system, communications, as well as the legal system. As Natalia Romanenko said, today the company is managed in 11 clusters.

“It would be wrong for a company which production is concentrated in the regions to master leadership and other useful skills of employees in the head office. When all business processes are concentrated in the centre, the company becomes slow, it does not have time to adjust its operations in accordance with market changes. And in order to move forward and stay ahead of competitors, one needs to be flexible,” said Natalia Romanenko.

Despite the fact that there were no large rotations, the company experienced positive results of decentralization. First, it made local managers more confident, who in 98% of cases made the right decisions based on the situation in the region. Secondly, there was no indistinct responsibility, which is present in the context of centralization. Each director understands that he makes the decision by himself and is responsible for it.