Strategic Branches of Economic and Managerial Training of Principals
in Ukraine using Business-simulations
Vitalii Ya. Pazdrii
1,2 a
, Viktoriya O. Kuprievych
1 b
and Svitlana H. Lytvynova
3 c
University of Educational Management, 52A Sichovykh Striltsiv Str., Kyiv, 04053, Ukraine
Kyiv National Economic University named after Vadym Hetman, 54/1 Peremohy Ave., Kyiv, 03057, Ukraine
Institute for Digitalisation of Education of the National Academy of Educational Sciences of Ukraine, 9 M. Berlynskoho
Str., Kyiv, 04060, Ukraine
Entrepreneurship Education, Business-Simulation, Business Tournament, Business School.
The main topic of this articles focused on ways of introducing and using of modern simulation into education
of youth 14-19 ages in schools, colleges, institutes and universities of post-socialistic countries (for exam-
ple Ukraine). Actuality of this theme is determined by need of increasing of economic literacy, activity and
responsibility of Ukraine’s society for really realization of economic reforms. All persons, especially our
youth age 14-19, must have new instruments and skills for reaction and self-realization in new dynamic and
quickly changing world. Authors discovered experience, problems and innovative decisions of practical re-
alized state experiment project “Development business education in Ukraine as part of entrepreneurial state
policy”, which had started from six secondary’s schools in Kropyvnytskyi (Central Ukraine). Project team
used business-simulation ViAL+ for experiment and modernization of entrepreneurial education. Because,
this instrument is adopted for Ukrainian conditions, laws and economic culture, traditions. This project be-
came part of the developing of entrepreneurial skills of pupils, which is one of the priorities of the concept of
the New Ukrainian School. Also, this experience became a case of providing of entrepreneurial education at
the other Ukrainian regions. The main parts of experiment are courses for secondary school “Business Educa-
tion” for 7-10 classes, summer schools of Business Leadership, local and All-Ukrainian business-tournaments.
Also authors described experience of using simulation for youth 16-19 ages in colleges and universities. In
articles also are revealed main problems and ways of solving.
In modern conditions of transformation in Ukraine
there was a need to reform the management of
schools. The adoption of the Law of Ukraine “On
Education” in 2017 launched mechanisms for struc-
tural reform of the management system and methods
of carrying out the activities of schools. The Law
stipulates that “the state guarantees the academic,
organizational, financial and personnel autonomy of
schools. The scope of autonomy of schools is deter-
mined by the Law, special laws and constituent doc-
uments of the school” (Verkhovna Rada of Ukraine,
2017). We need special trainings programs for semi-
directors and directors of schools, colleges and uni-
versities. Also there are introduced business instru-
ments into everyday and strategic activity of educa-
tional organisations. During the trainings we con-
ducted research in the format of a survey on three
questions: 1) who is the client; 2) which is a product
of the educational institution; 3) which is a raw mate-
rial. And also we identified the main areas of training
of principals of school using business-simulation.
At the article we described:
peculiarity of new conditions for economic and
managerial training of principals;
mental and professional features of perception of
business education;
modern instruments of forming of economic and
managerial competencies during training of prin-
cipals of schools.
Pazdrii, V., Kuprievych, V. and Lytvynova, S.
Strategic Branches of Economic and Managerial Training of Principals in Ukraine using Business-simulations.
DOI: 10.5220/0010920200003364
In Proceedings of the 1st Symposium on Advances in Educational Technology (AET 2020) - Volume 1, pages 32-38
ISBN: 978-989-758-558-6
2022 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
Based on this, schools of all levels become full-
fledged business entities with different forms of own-
ership and in different statuses (budgetary institution,
non-profit school, profitable school). And the main
type of their activity is educational (Verkhovna Rada
of Ukraine, 2017). In this regard, the introduction of
economic and management approaches in the activi-
ties of schools becomes extremely important.
A sharp change in the role of the head of the
school, the need to make a wide range of management
decisions make not only to the established pedagog-
ical norms of the school, but also to the traditional
tools of business management. Given that the educa-
tional and business spheres of operation are quite dis-
tant and little intersect, one of the tasks of economists
and scientists-educators is to approximate, adapt and
implement economic tools of management and anal-
ysis in the daily activities of the school.
It is worth recalling the basic legislative changes
that operate in the light of the current Law of Ukraine
“On Education” in accordance with the levels of
education Analyzing the legislative changes in the
Laws of Ukraine “On Professional Higher Educa-
tion” (Verkhovna Rada of Ukraine, 2019, 1998), “On
Complete General Secondary Education” (Verkhovna
Rada of Ukraine, 2020)t is worth noting the following
independence in certain forms of education, forms
of organization of the educational process;
the right to form and approve one’s own staff list,
respectively, free employment and dismissal of
pedagogical, scientific-pedagogical and other em-
independence in financial, economic and other ac-
tivities in accordance with the legislation and con-
stituent documents;
free disposal of own revenues;
the head of the school directly manages the ac-
tivities of his institution, he is a representative in
external relations with state bodies, local govern-
ments, legal entities and individuals;
the head decides the financial and economic ac-
tivities of the school, forms its structure, forms
and approves the staff list in accordance with the
law, is the manager of property and funds, ensures
compliance with staff and financial discipline;
the head ensures the development and is responsi-
ble for the implementation of the approved devel-
opment strategy of the school;
the head is responsible for the results of the insti-
tution of professional higher education before the
founder (founders) or his authorized body (per-
sons) (Verkhovna Rada of Ukraine, 2019, 2020).
A balancing role in the system of strategic man-
agement of an school is played by the pedagogical
council of the school:
determination of strategy and perspective direc-
tions of development of school;
considers the draft constituent document of the
school, as well as proposals for amendments to
considers the draft estimate (financial plan) of
the institution and the annual financial report of
the school, and other significant strategic steps
(Verkhovna Rada of Ukraine, 2020).
Analyzing such changes in the adopted profile
laws, which correspond to the Law of Ukraine “On
Education”, we can predict that in the new version of
the law on vocational (technical) education in terms of
powers of the institution, its head and collegial body
will be written similar provisions. These steps lead to
one thing – the need for radical change in the training
and retraining of managers in the education system.
The offered article considers ways and ways of
economic, administrative preparation of heads of
schools and their deputies in the conditions of reform-
ing of education.
In Ukraine during 2016-2021, research and experi-
mental work of the all-Ukrainian level on the topic:
“Development of business education in Ukraine as an
element of state policy to promote entrepreneurship”,
approved by the Order of the Ministry of Education
and Science of Ukraine No. 1221 from 07.10.2016,
was proposed and conducted a training course for di-
rectors and semi-directors of preschool, secondary,
vocational and higher education on the topic: “Im-
plementation of economic approaches in the manage-
ment of schools”. During 2017–2019, 1225 training
participants from all regions of Ukraine were covered
(table 1). We chose the regions based on the openness
of the regions themselves, readiness for change and
training of their principals.
Strategic Branches of Economic and Managerial Training of Principals in Ukraine using Business-simulations
Table 1: Statistics of participants of trainings.
Region 2016-2017 2018-2019
Vinnitsa 0 41
Donetsk 0 36
Zakarpattia 120 60
Kyiv 72 383
Kirovohrad 15 66
Luhansk 0 41
Lviv 50 138
Sumy 0 45
Ternopil 28 50
Kherson 3 0
Cherkasy 0 4
Chernivtsi 30 37
Total 80 238
During the training, participants were interviewed
on the following similar issues:
Is the school an economic entity?
Who is the client (s) of the school?
What are the products (services) of an school
(main and secondary)?
What is the ”raw material” of an school? What
other resources are needed?
The results of the survey show a number of trends
in education:
for more than 50%, directors were agreed that
schools are part of economic systems;
for 87% of participants the pupil / student is the
raw material of the schools;
the products of the school are graduates, compe-
tencies, certificates / diplomas;
clients of the school are parents, the state, uni-
versities, sometimes businesses, public organiza-
for some directors there is a rejection of the intro-
duction of the principles of classical management
in the management of schools and the need to un-
derstand economic issues.
These answers reflect the gap in the perception
of the customer, product, input resources between
schools and representatives of private business, in par-
ticular training and education centers, which clearly
understand these positions. There are objective and
subjective reasons for this situation.
Objective reasons:
the legacy of the industrial economy all had to
be adjusted to the production system. Who did not
fit or ruled, or “fell out” of the system of economic
absolutization of the state in the socialist system;
low human value in the USSR.
Subjective reasons:
unwillingness to change quickly and understand
all the laws of a market economy;
lack of tools for adaptation from systemic, public
administration to autonomy and self-government;
legislative “leapfrog” with changes and the possi-
bility of rolling back reforms;
non-acceptance of each other’s educational and
business community, different “languages”, prin-
ciples and approaches to solving issues.
These reasons are significant obstacles to the
training of heads of schools in economic and man-
agerial approaches. And in order to train managers
and effectively retrain it is necessary to take into ac-
count the peculiarities of the implementation of the
economic style of management of the organization.
The first economic management should be a sys-
tem that covers all levels of operation: customers
(pupils / students), teachers / lecturers, deputy prin-
cipals and principals (figure 1).
Figure 1: Development of entrepreneurial in education.
At each level it is necessary to implement the
approaches and methods. For leaders, it is recom-
mended, first of all, to look at the entrusted school not
from the point of view of a teacher, organizer, peda-
gogical manager, but from the point of view of an eco-
nomic non-profit organization. Such an organization
has many business processes, and which should func-
tion as efficiently as possible and use the allocated
public funds from the state and / or local budgets.
This will help to develop economic thinking,
which is based on a simple but vital position: any
result should always be greater than the spent mate-
rial, financial, informational, time resources. If such
equality is not ensured, then such a solution should
be revoked or implemented so as to reduce the cost of
limited resources.
At the level of deputies, the range of responsibil-
ities is radically expanding. Today it is not enough
AET 2020 - Symposium on Advances in Educational Technology
to be responsible and manage only educational activ-
ities. It is necessary to move to a full range of man-
agement in various areas:
marketing of the school (information, image pol-
icy, admission campaign);
financial (ensuring such a state that funds are al-
ways enough for all costs in full and at the right
HR-management (to form an initiative and self-
supporting team, which prevents moments of
emotional burnout and recession).
Only in this case can we talk about the introduc-
tion of real autonomy and full management of the en-
tire educational system.
However, building an effective internal gover-
nance mechanism is not yet possible guarantees the
successful operation of the school as a whole. Af-
ter all, any school significantly depends on the exter-
nal environment and the influence of all stakeholder
groups. The main such groups are other schools of
different levels (both relevant and related), clients
(students, parents), business as sponsors and as future
employers for educational services, with the founders
and authorities in the field of education.
Heads of schools take care of external communi-
cation. Because strong interaction and balance of edu-
cational programs must be built between different lev-
els of education, so as to ensure a progressive and con-
tinuous learning process. After all, youth who enters
the formal education system at 2 years and leaves it at
19-25 years, must clearly understand where and how
to move in adult life, must be able to earn their skills,
knowledge, be professional and acquire basic compe-
tencies (competencies in understanding of business).
This approach means that there can be no “gaps”
in approaches, forms of learning at the intersection
of educational levels. For example: the last year of
kindergarten corresponds to the 1st grade of school,
9th grade with the 1st year of college. Graduation
from the 11th grade of the school opens opportuni-
ties for study in the first year of universities and high
Today, as in previous years, there is a big discrep-
ancy between the last classes of school and the first
months of study in university. Lecturers spend signif-
icant resources on adapting first-course students in-
stead of effectively teaching them specialized disci-
plines and developing professional skills.
A similar situation arises between the 9th grade
and the 1st year of VET. With the difference that
the vocational education system often works to re-
store the student’s motivation and try to direct him to
adult life because he did not fit into the “classical
schemes” of schooling.
In interaction with the market of educational ser-
vices, two key issues should be in focus. First, un-
derstanding what exactly the applicant for educational
services, his parents, wants. Secondly, a clear answer
to what exactly the community should allocate funds
from the public budget intended to finance the school.
Regarding the first, the content of educational pro-
grams cannot be the same from year to year. On the
contrary, it should be flexible, relevant to today’s de-
mands of young people. And the teachers themselves
must also be modern, in demand in their subjects.
Regarding the second position, the value of ed-
ucational services for the client, community (urban,
rural, district, regional or national), an explanation of
why budget funds are spent and what areas of training
they should be allocated to benefit from it should be
constantly confirmed communities.
It is worth working with business as equal part-
ners. Elevation in the status of the head of a school
opens opportunities for greater maneuverability in in-
teraction with business, as both parties are free to
make their decisions in search of mutually beneficial
proposals. For business, first of all, schools are inter-
esting from the point of view of the employer and the
ability to quickly find employees. This is an interac-
tion in the dimension of the labor market. And, if the
school can fully satisfy the requests for training, the
support from the business is provided.
If not, the dialogue will not take place. It will be
easier and even cheaper for a business to train a spe-
cialist than to retrain someone. The possibility of such
an alternative should be constantly considered by the
head of the school.
Another source of interaction with business is the
provision of mediation services in the search for em-
ployees (the provision of employment services in the
context of the labor market). Education organizations
have practically ready and motivated employees. And
there is an opportunity to test and find the right em-
As for the state, it is essential to ensure “trans-
parent” rules of the game (regulatory system), which
will determine the working mechanisms for all par-
ticipants in the educational process and stakeholders.
Therefore, there is a need for internal and external se-
curity. This is especially important for Ukraine.
This understanding of the prerequisites for build-
ing the internal and external economic environment
of the school contributes to the successful learning
and further restructuring of the school on the basis of
organizational, financial, personnel, academic auton-
Strategic Branches of Economic and Managerial Training of Principals in Ukraine using Business-simulations
Economic and managerial (managerial) training of
heads of schools pursues the main goal to teach /
improve the ability to generate ideas and implement
them independently in the practice of autonomous
and self-sufficient management of schools. And such
training should take place not only by standard tools
(lectures, seminars, trainings), but also by innovative
methods with the involvement of game and simula-
tion technologies. Because rapid, effective retraining
of economic principles of managers, formed in a rigid
hierarchy of public administration, is possible only by
radical methods that directly affect thinking, behavior
and form applied skills.
Among such technologies of innovative, fast and
radical practical training of managers are:
virtual reality.
Each technology is suitable for use in certain con-
ditions in the presence / absence of technical support.
Comparative characteristics of each of the technolo-
gies are:
Games need scenario, need rules, participants
and trainers, less interest after 3-5 rounds of play-
ing, we remember that it is only game (Tokarieva
et al., 2019). Minimum technical support.
Simulations learning by doing, need computer
classes, not necessarily of trainers/moderators, re-
production of conditions of the real environment /
object / process. Normal technical support.
Gamification using of game practices and
mechanisms in a non-game context in real life,
technical, organizational and high-level need of
resources, involvement of natural human in-
stincts: competition, achievements, status, self-
expression, altruism, problem solving, formation
of skills in the process of training and real life
or in a specially created environment (Fedorenko
et al., 2021). Need medium technical support.
Virtual Reality – full immersion in a specially cre-
ated environment, need special IT support and
equipment, the participant virtually “lives” in
such an environment, difficult exit from the en-
vironment. Must very high technical support.
When comparing different methods, the most ap-
propriate to use are games and simulators, which are
relatively easy to obtain, organize and conduct with
minimal or sufficient (available to most users) tech-
nical conditions. As for gamification and virtual re-
ality, today these tools are either not yet perfect, or
are valuable in organization and use. And the use of
such technologies requires considerable time and in-
clusion, which, as a matter of fact, does not have the
heads of schools.
The use of game technologies, in particular, busi-
ness games, in professional development of managers
is sufficiently described in the pedagogical literature.
But the issue of using simulators, in particular busi-
ness simulators, is not covered enough, and is of-
ten unusual and new for the pedagogical management
community (Antoniuk et al., 2021).
Simulation technologies are interactive systems
that reproduce the conditions of a particular envi-
ronment, object, process using mathematical models.
Examples of simulators are flight simulators, auto-
mobiles, locomotives, meteorological, physical, etc.
Economics and business often use business simula-
tors, which are interactive models of the real business
environment in the form of a computer program that
reproduces a structural unit of the company, an entire
firm, industry or the economy of the whole country
(Banshchykov and Pazdrii, 2017).
The history of creation and use of simulators is
more than 50 years and has its roots in the military
sphere. The leaders are Great Britain, the United
States, Japan, Germany, and Scandinavian countries.
In some countries, simulators are used at all levels of
education from preschool to adult education. Be-
cause this technology allows you to acquire practical
skills and abilities.
A business simulation is a computer program,
a large-scale interactive simulation system that is
specifically designed to provide participants with eco-
nomic and managerial competencies and skills. The
main simulators are to create opportunities for the ac-
quisition of practical skills in managing the economic
processes of the entire technological chain of produc-
tion, marketing and competition in the market envi-
ronment, as well as the management of the enterprise
as a whole. Today in the world there are hundreds of
professional simulators with varying degrees of im-
mersion and elaboration of processes. Ukraine also
has its own products that are actively used in educa-
tional activities (figure 2).
The effectiveness of gaining practical skills while
participating in interactive business simulators is en-
AET 2020 - Symposium on Advances in Educational Technology
Figure 2: Well-known business simulations in the world and
sured by the application of the method of learning by
doing (learning by doing), which gives the participant
the opportunity to:
not only observe the processes of functions of the
enterprise, but also to make specific economic and
managerial decisions that have real and adequate
consequences for further activities;
to acquire and improve theoretical knowledge of
economics and management, to understand the
causal links in the management of economic pro-
simulators try to realistically reproduce the pro-
cesses of functioning of the production enterprise,
starting with the organization of production and
ending with the sale of manufactured goods in
conditions where there are different types of mar-
ket – from duopoly to monopolistic competition.
After registration in the system, the participant re-
ceives an enterprise in an environment close to reality
and has the opportunity to make economic and man-
agerial decisions necessary for the start of its work
and further development. The participant is given the
opportunity to use existing financial instruments in
Ukraine, to determine the range of products planned
for production, to master it in production, to expand
and modernize the production technological base, to
hire and organize the work of personnel. Using ap-
propriate marketing tools, the participant has the op-
portunity to start promoting and selling products.
In addition, it should be emphasized that the com-
pany is in a market environment, and when making
decisions it is necessary to take into account the pres-
ence of other market participants. Thus, competition
in the virtual market space forces the participant not
only to look for effective tools and ways to promote
the product, but also to make changes in the produc-
tion process in order to change the consumer qualities
of products and optimize its cost (Pazdrii et al., 2019).
For teachers and management of schools, partici-
pation in business simulators is quite difficult, as it is
necessary to master economic terminology, methods
and approaches to decision-making in a market envi-
ronment, analysis of decisions and results.
During 2015-2020, 120 trainings were held and
as part of the annual business tournament “Com-
pany Strategy” a league of mentors was opened us-
ing the ViAL+ business simulator. About 600 lead-
ers, deputies, teachers became participants. During
this ViAL+ business simulation, the participant goes
through several stages:
1) there is an adaptation to the simulation environ-
ment (5-6 periods);
2) a comprehensive vision of the company is formed
as a system, which, at the same time, consists of
interconnected functional units (10–12 periods);
3) the understanding of causal relations of manage-
ment of economic processes of the enterprise in
the competitive market environment (18–20 peri-
ods) is formed;
4) after that conscious implementation and adjust-
ment of the previously formed action plan, pro-
fessional analysis of the results (after the 20th pe-
5) consolidation of acquired competencies and prac-
tical skills occurs after 25 periods.
The usefulness and need for such trainings was
noted, but there is also a significant entry threshold.
In this regard, it is worth noting the necessary pre-
requisites for the use of business simulators in the re-
training of managers and training of future managers:
clear arrangement of tasks and setting to go be-
yond traditional learning and existing patterns;
preparation of participants for economic termi-
nology, logic of management decisions in market
updating of digital skills of training participants;
assistance with the first decisions, a full explana-
tion of the consequences of decisions and what to
look for;
constantly explain the relationship between busi-
ness processes and processes in schools in the
light of the implemented reform of the education
During 2018–2020, 230 managers, deputy heads
of secondary, vocational, higher education institu-
tions or their structural subdivisions were trained us-
ing simulators. For 67% there was a significant and
quite significant increase in ownership of economic
and managerial competencies.
Strategic Branches of Economic and Managerial Training of Principals in Ukraine using Business-simulations
Complex and systematic use of various innova-
tive pedagogical technologies in the process of pro-
fessional development of vocational school lead-
ers makes it possible to rationally use teaching
time, motivate students to self-development and self-
improvement, while increasing the level of psy-
chological, methodological, didactic and managerial
The technology of professional development of
heads of vocational schools has its own specifics,
structure, stages. It is an effective tool for achieving
professional self-improvement, acme peaks, compe-
tencies on a spiritual-axeological basis, initiation of
rethinking, self-overcoming, self-determination, self-
realization of a specialist, creative transformation of
all professional activities based on conscious self-
The study does not cover all aspects of the prob-
lem. The subject of further scientific research may be
the study of foreign experience of professional self-
improvement of heads of vocational schools; devel-
opment of effective pedagogical technologies aimed
at improving personal and professional qualities, in
particular through a set of psychological and peda-
gogical trainings and self-trainings.
To further improve the training, it is necessary to
create a specialized simulation of schools in terms
of economic and organizational autonomy. This
project envisages the creation of an existing simula-
tion, which will model the activities of the school and
the competitive economic environment, the creation
of a simulation by all participants. Such a simulation
will be designed to prepare principals, deputy prin-
cipals, teachers-methodologists to work in the new
conditions of the school, in which funds will be allo-
cated not to a particular school, but to students in the
form of certificates. This will force schools to fight for
the attraction of more able students, and, accordingly,
will open space for competition between schools and
create conditions for improving the quality of educa-
tional services for students.
Thus, modern changes in legislation and the re-
form of schools are forcing the search for innovative
ways of training, education and retraining of man-
agers in educational activities. Such tools include
game and simulation technologies. Today, you should
use leading business simulators. However, in the fu-
ture we will hope for the implementation of a special-
ized simulation of schools.
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rozov, A. V., and Kontsedailo, V. V. (2021). Integrat-
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Banshchykov, P. and Pazdrii, V. (2017). Simula-
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“Pro osvitu” (Law of Ukraine On education).
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AET 2020 - Symposium on Advances in Educational Technology