Cost-based industrial enterprise human capital management

I.A Bayev,Y.B Kolbachev,Sergei Glukhov,T.A Khudyakova,A.V Babkin,A.V Shmidt,Evgeniya Gonchar,V.V Savaley,A.V Keller,A.A Radionov

doi:10.1051/shsconf/20173501039

Abstract

The paper focuses on importance of human capital in development of industrial enterprises, issues of their management and methods of achieving balance between interests of owners and employees. Difference between such concepts as human and labor potential as well as human and working capital is clarified. The special attention is paid to the fact that an effective system of motivation and incentivation of labor is to serve as means of rapprochement of human and labor capital. The authors point out the limited scope of the traditional forms of labor motivation and incentivation mechanisms and highlight the complexity of their encouragement for collective work results. The authors suggest using the cost-based approach to workforce management, which is based on assessment of market and intrinsic value of human capital in view of investment and quality characteristics. The proposed approach is attended by methodological support and operational calculations. The study states that the suggested human capital management model can be introduced into practice, as well as substantiates the necessity for boosting the performance of industrial enterprises and their cost by increasing production, stimulating the staff for selfrealization and self-improvement by bringing the owners’ corporate interests closer to the interests of the employees.

Highlights

Improving efficiency of human capital management is one of the most common challenges, faced by modern enterprises
Workforce, who fulfils a number of functions and has a closer relation to specific operations, sees weaknesses in a system of enterprise development management much better than top management
An opportunity of getting desired economic benefit by owners of an enterprise depends on work ethics of staff as well as on its readiness to reveal reserves of enterprise economic efficiency increase

Summary

Introduction

Improving efficiency of human capital management is one of the most common challenges, faced by modern enterprises. Weak zones remain uneliminated a great while as long as a talented and attentive manager identify them. This situation is common in many enterprises. It is obvious that the reason for it is weak mechanism of motivation and incentivation of work and inefficient human capital management system as a whole Economic losses from it are important in the industry, where specific nature of activities is more complex, and management effectiveness depends on attitude of all employees of a large team to work. In order to identify reserves of economic efficiency increasing, it is important to regulate corporate relations for purposes of improvement of efficiency of human capital management through creating command interest in development of an industrial enterprise

Ease of Use

Theoretical Part

Practical Relevance

Conclusions