Problems of Forming Psychological and Management Competence of Network Leaders in MLM

Abstract

This article is a theoretical study of problems related to the formation of psychological competence of network leaders regarding management interaction and optimization of the management process in modern Ukrainian network marketing companies (MLM) in order to achieve maximum efficiency of management in networks under market economy. In this article authors went over the main requirements for founders (leaders) regarding their ability to lead. It is stated that at the start the leaders of MLM companies require neither in-depth knowledge nor special qualifications in order to work, as they are able to learn while working. However, as the company grows and the leaders gather their team of employees, requirements for a leader’s both professional and psychological competence change. This study indicates that it is beneficial for the company if leaders not only study and learn themselves but teach their team as well.The authors state that there are a number of problems in the formation of psychological and managerial competences of MLM leaders and managers. This mainly refers to management interaction and optimization of the management process in modern Ukrainian network marketing companies. A significant part of these problems is based on the specifics of network marketing as a type of business activity in the domestic field. Another part is a consequence of the unpreparedness of MLM leaders and managers for change and development, and their overall resistance to innovation, despite a significant amount of new opportunities (webinars, Internet conferences, online courses and trainings, etc.) that appeared with the development of public communications, and which are also, unfortunately, not fully used and not by all network leaders.Solving those problems, at least partially, will ensure growth in both professional and psychological competences, which, in turn, would be beneficial for the further development and improvement of MLM companies in Ukraine.