Functional Cost Analysis in the HR Management System

Abstract

The relevance of this research is based on the natural need of any enterprise to increase its financial performance with an optimal ratio of available internal resources. The research problem is determined by the fact that in practice, enterprises do not fully use available tools of functional and cost analysis to justify conclusions about the results of their activities. An additional complication is that functional analysis is widely used in practice, while cost analysis of the management systems’ functions has certain specifics. Functional cost analysis (FCA) allows you to identify costs for the implementation of system functions at a given quality level. The analysis explores all possible functions in order to determine the cost of providing services and to ensure that processes can be upgraded and the productivity can be improved. The author identified problems in the work of a specialist in the personnel management department and suggested ways to reduce costs and improve the quality of functions, which confirmed the effectiveness of the FCA as a tool for evaluating management systems and the significance of this method in making managerial decisions.