IDEAS home Printed from https://ideas.repec.org/a/aiy/jnjaer/v20y2021i4p666-700.html
   My bibliography  Save this article

Assessment of the Human Capital of an Enterprise and its Management in the Context of the Digital Transformation of the Economy

Author

Listed:
  • E.V. Orlova

Abstract

Current technological development amid the fourth industrial revolution inevitably changes the nature and conditions of work. The quality of human capital constitutes a significant contribution not only to labor productivity growth, but also contributes to the growth of social connections, loyalty and trust by employees. It increases the market share and the competitiveness of products. Consequently, the problem associated with improving the quality of human capital as the most important productive resource of a company is relevant, timely, socially and economically significant. The aim of the study is to develop a technology for human capital management based on a new methodology for assessing human capital and a scheme for the formation of individual trajectories of professional development, ensuring an increase in the quality of human capital and an increase in the company's efficiency. The proposed method for assessing human capital is designed to identify the digital twin of an employee and takes into account such traditional characteristics as age, education, professional experience and competencies, as well as additional characteristics - social status, health quality, inter-professional competencies, motivation and involvement, and provides a comprehensive assessment of human capital in enterprises in the course of digital transformation. Based on the results of the assessment of human capital, management decisions are developed for the individual trajectories of professional development design, aimed at increasing labor productivity and contributing to the companies’ operational efficiency growth. Experimental studies have been carried out on the use of the proposed technology for human capital management based on the data of a large oil-producing enterprise in the Republic of Bashkortostan. It is shown that the introduction of individual trajectories of professional development makes it possible to increase labor productivity by 6–7 % in the next 2–3 years, the company's revenue by 5–7 % and profit by 2 %. The theoretical significance of the results is concerned with the identified features of the human capital of a company associated with the health quality, the development of interdisciplinary knowledge, skills and abilities, motivation and involvement which should be taken into account during the process of assessment. The developed technology provides support for making managerial decisions for working out individual trajectories of employees’ development. The practical outcome of the study is the methods for human capital assessment and its development, which ensure the labor productivity growth, companies’ revenue and profit increase with minimal cost.

Suggested Citation

  • E.V. Orlova, 2021. "Assessment of the Human Capital of an Enterprise and its Management in the Context of the Digital Transformation of the Economy," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 20(4), pages 666-700.
    • Handle: RePEc:aiy:jnjaer:v:20:y:2021:i:4:p:666-700
    DOI: http://dx.doi.org/10.15826/vestnik.2021.20.4.026
    as

    Download full text from publisher

    File URL: https://journalaer.ru//fileadmin/user_upload/site_15934/2021/03_Orlova.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15826/vestnik.2021.20.4.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. A. G. Aganbegyan, 2017. "Investments in fixed assets and human capital: Two interconnected drivers of socioeconomic growth," Studies on Russian Economic Development, Springer, vol. 28(4), pages 361-363, July.
    2. Regina Osranek & Klaus J. Zink, 2014. "Corporate Human Capital and Social Sustainability of Human Resources," CSR, Sustainability, Ethics & Governance, in: Ina Ehnert & Wes Harry & Klaus J. Zink (ed.), Sustainability and Human Resource Management, edition 127, pages 105-126, Springer.
    3. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 1-51.
    4. David Autor & David Dorn & Lawrence F Katz & Christina Patterson & John Van Reenen, 2020. "The Fall of the Labor Share and the Rise of Superstar Firms [“Automation and New Tasks: How Technology Displaces and Reinstates Labor”]," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(2), pages 645-709.
    5. Michael Dickmann & Jean-Luc Cerdin, 2014. "Boundaryless career drivers – exploring macro-contextual factors in location decisions," Journal of Global Mobility, Emerald Group Publishing Limited, vol. 2(1), pages 26-52, June.
    6. Smith, Adam, 1977. "An Inquiry into the Nature and Causes of the Wealth of Nations," University of Chicago Press Economics Books, University of Chicago Press, number 9780226763743 edited by Cannan, Edwin, December.
    7. Mark Roseland & Maria Spiliotopoulou, 2016. "Converging Urban Agendas: Toward Healthy and Sustainable Communities," Social Sciences, MDPI, vol. 5(3), pages 1-20, July.
    8. Gratton, Lynda & Ghoshal, Sumantra, 2003. "Managing Personal Human Capital:: New Ethos for the 'Volunteer' Employee," European Management Journal, Elsevier, vol. 21(1), pages 1-10, February.
    9. Heckman, James J. & Kautz, Tim, 2012. "Hard evidence on soft skills," Labour Economics, Elsevier, vol. 19(4), pages 451-464.
    10. Ekaterina V. Orlova, 2020. "Labour productivity management using health factors: Technique and models," Upravlenets, Ural State University of Economics, vol. 11(6), pages 57-69, December.
    11. Michael Dickmann & Jean-Luc Cerdin, 2014. "Boundaryless career drivers – exploring macro-contextual factors in location decisions," Journal of Global Mobility, Emerald Group Publishing Limited, vol. 2(1), pages 26-52, June.
    12. Miloš Hitka & Alžbeta Kucharčíková & Peter Štarchoň & Žaneta Balážová & Michal Lukáč & Zdenko Stacho, 2019. "Knowledge and Human Capital as Sustainable Competitive Advantage in Human Resource Management," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    13. Lu Zhang & Xiaochao Guo & Zhimei Lei & Ming K. Lim, 2019. "Social Network Analysis of Sustainable Human Resource Management from the Employee Training’s Perspective," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ekaterina V. Orlova, 2022. "Impact of Companies' Social Capital on Person's Innovativeness in Russia: Economic Mechanisms and Diagnostic Tools," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 21(3), pages 545-575.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ekaterina V. Orlova, 2021. "Design of Personal Trajectories for Employees’ Professional Development in the Knowledge Society under Industry 5.0," Social Sciences, MDPI, vol. 10(11), pages 1-29, November.
    2. Kambayashi, Ryo & Ohyama, Atsushi & Hori, Nobuko, 2021. "Management practices and productivity in Japan: Evidence from six industries in JP MOPS," Journal of the Japanese and International Economies, Elsevier, vol. 61(C).
    3. Joonkyu Choi & Nathan Goldschlag & John C. Haltiwanger & J. Daniel Kim, 2021. "Early Joiners and Startup Performance," NBER Working Papers 28417, National Bureau of Economic Research, Inc.
    4. Achyuta Adhvaryu & Anant Nyshadham & Jorge A. Tamayo, 2019. "Managerial Quality and Productivity Dynamics," NBER Working Papers 25852, National Bureau of Economic Research, Inc.
    5. Lukáš Smerek & Milota Vetráková & Šárka Čemerková & Vojtěch Malátek, 2020. "Comparison of the Level of Personnel Work in the Czech Republic and Slovakia," Sustainability, MDPI, vol. 13(1), pages 1-16, December.
    6. Antonioli, Davide & Marzucchi, Alberto & Rentocchini, Francesco & Vannuccini, Simone, 2024. "Robot adoption and product innovation," Research Policy, Elsevier, vol. 53(6).
    7. Masagus M. Ridhwan & Rizki Nauli Siregar & Jahen F. Rezki, 2022. "Superstar Firms, Productivity And Technological Progress: Evidence From Indonesia’S Manufactoring Sector," Working Papers WP/10/2022, Bank Indonesia.
    8. Bhattacharya, Sourav & Chakraborty, Pavel & Chatterjee, Chirantan, 2022. "Intellectual property regimes and wage inequality," Journal of Development Economics, Elsevier, vol. 154(C).
    9. Erik Brynjolfsson & Paul Milgrom, 2012. "Complementarity in Organizations [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    10. Cabane, Charlotte & Hille, Adrian & Lechner, Michael, 2015. "Mozart or Pelé? The effects of teenagers’ participation in music and sports," Economics Working Paper Series 1509, University of St. Gallen, School of Economics and Political Science.
    11. Marianne Bernatzky & José María Cabrera & Alejandro Cid, 2017. "Frequency of testing Lessons from a field experiment in higher education," Documentos de Trabajo/Working Papers 1703, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    12. Ensar Yılmaz & Zeynep Kaplan, 2022. "Heterogeneity of market power: firm-level evidence," Economic Change and Restructuring, Springer, vol. 55(2), pages 1207-1228, May.
    13. Bertoli, Simone & Dequiedt, Vianney & Zenou, Yves, 2016. "Can selective immigration policies reduce migrants' quality?," Journal of Development Economics, Elsevier, vol. 119(C), pages 100-109.
    14. Patrick Mellacher, 2021. "Growth, Inequality and Declining Business Dynamism in a Unified Schumpeter Mark I + II Model," Papers 2111.09407, arXiv.org, revised Nov 2023.
    15. González-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “Gazelles”: Evidence from business accelerators," Journal of Financial Economics, Elsevier, vol. 139(1), pages 260-287.
    16. Stephen Roper, 2023. "The changing landscape of firm-level productivity – anatomy and policy implications," Insight Papers 020, The Productivity Institute.
    17. Charles A.E. Goodhart & Dimitrios P. Tsomocos & Xuan Wang, 2023. "Support for small businesses amid COVID‐19," Economica, London School of Economics and Political Science, vol. 90(358), pages 612-652, April.
    18. Reyes, Germán, 2024. "Coarse Wage-Setting and Behavioral Firms," IZA Discussion Papers 17039, Institute of Labor Economics (IZA).
    19. Forslid, Rikard & Okubo, Toshihiro, 2023. "Trade, location, and multi-product firms," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    20. Stephane Verani, 2018. "Aggregate Consequences of Dynamic Credit Relationships," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 29, pages 44-67, July.

    More about this item

    Keywords

    human capital; individual trajectories of professional development; companies’ human capital assessment; labor productivity management.;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnjaer:v:20:y:2021:i:4:p:666-700. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.