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

Keywords:

Entrepreneurship Education, Business-Simulation, Business Tournament, Business School.

Abstract:

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.

1 INTRODUCTION

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-

https://orcid.org/0000-0001-5713-282X

https://orcid.org/0000-0002-8196-8309

https://orcid.org/0000-0002-5450-6635

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

2 NEW CONDITIONS FOR

ECONOMIC AND

MANAGERIAL TRAINING OF

PRINCIPALS

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

innovations:

• 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-

ployees;

• 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

it;

• 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.

3 MENTAL AND PROFESSIONAL

FEATURES OF PERCEPTION

OF BUSINESS 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-

tions;

• 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

relations;

• 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

time);

• 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

colleges.

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-

ployee.

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-

omy.

Strategic Branches of Economic and Managerial Training of Principals in Ukraine using Business-simulations

4 MODERN INSTRUMENTS OF

FORMING OF ECONOMIC

AND MANAGERIAL

COMPETENCIES DURING

TRAINING OF PRINCIPALS OF

SCHOOLS

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:

• games;

• simulators;

• gameﬁcation;

• 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

Ukraine.

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-

cesses;

• 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-

riod);

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

conditions;

• 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

sector.

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

5 CONCLUSIONS

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

competence.

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-

development.

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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https://zakon.rada.gov.ua/laws/show/2745-19/print.

Verkhovna Rada of Ukraine (2020). Zakon Ukrayiny

“Pro povnu zahalnu serednyu osvitu” (Law of

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AET 2020 - Symposium on Advances in Educational Technology