IDEAS home Printed from https://ideas.repec.org/a/bal/journl/2256-074220184317.html
   My bibliography  Save this article

Economic Efficiency Of Investments Into Personnel Development Of Enterprises

Author

Listed:
  • Olena Kakhovska

    (Department of Accounting, Economics and Human Resources Management of Enterprise, Prydniprovska State Academy of the Civil Engineering and Architecture, Ukraine)

  • Tetiana Lositska

    (Scientific Research Department, Kyiv National University of Trade and Economics, Ukraine)

  • Katerina Kolesnikova

    (Department of Applied Economics, Odessa Institute of Trade and Economics of Kyiv National University of Trade and Economics, Ukraine)

Abstract

The purpose of the article is the research of further improvement of investment process into personnel of the enterprises, using modern methods and tools, which are put into practice, for an increase in resulting economic effects of enterprise’s activity. A key element in the functioning of companies is a balanced management system, so improving the effectiveness of investing in human capital should be considered by management as a priority. Therefore, it is important to improve the process of investing in personnel, using modern methods and tools that improve the efficiency of the company. Results. The structure of human capital is disclosed, which can be represented as a set of such components as health; competence; technical and special skills, which include the costs of continuing education, remuneration, other benefits and compensation. Problems that restrain investment of investments in personnel and tasks of personnel development policies are highlighted, the main one of which is maximizing the return on investment in employees. Practical implications. A motivating factor is an investment in planning and career motivation, which allows achieving a balance between the interests of the enterprise and the employee on the basis of principles: scientific, fairness, observance of labour legislation, efficiency, consistency. The definition of the economic efficiency of staff development in general form consists of three consecutive stages: the definition of the cost structure and their valuation; the definition of the structure of results and their valuation; comparison of the calculated values of costs and results reduced to one point in time. Value/originality. Management of investments aimed at the development of human capital will increase not only the effectiveness of the realization of human potential but also the efficiency of the use of all tangible and intangible assets of the enterprise.

Suggested Citation

  • Olena Kakhovska & Tetiana Lositska & Katerina Kolesnikova, 2018. "Economic Efficiency Of Investments Into Personnel Development Of Enterprises," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(3).
    • Handle: RePEc:bal:journl:2256-0742:2018:4:3:17
    DOI: 10.30525/2256-0742/2018-4-3-115-122
    as

    Download full text from publisher

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/432/pdf
    Download Restriction: no
    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/432
    Download Restriction: no
    File URL: https://libkey.io/10.30525/2256-0742/2018-4-3-115-122?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. Viktor Koval & Yuliia Prymush & Viktoriia Popova, 2017. "The Influence Of The Enterprise Life Cycle On The Efficiency Of Investment," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 3(5).
    2. Polterovich, Victor & Popov, Vladimir, 2006. "Эволюционная Теория Экономической Политики: Часть I: Опыт Быстрого Развития [An Evolutionary Theory of Economic Policy: Part I: The Experience of Fast Development]," MPRA Paper 22168, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    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. Kritana Prueksakorn & Cheng-Xu Piao & Hyunchul Ha & Taehyeung Kim, 2015. "Computational and Experimental Investigation for an Optimal Design of Industrial Windows to Allow Natural Ventilation during Wind-Driven Rain," Sustainability, MDPI, vol. 7(8), pages 1-22, August.
    2. Yirigui Yirigui & Sang-Woo Lee & A. Pouyan Nejadhashemi & Matthew R. Herman & Jong-Won Lee, 2019. "Relationships between Riparian Forest Fragmentation and Biological Indicators of Streams," Sustainability, MDPI, vol. 11(10), pages 1-24, May.
    3. Vladimir Popov, 2009. "Why the West Became Rich before China and Why China Has Been Catching Up with the West since 1949: nother Explanation of the “Great Divergence” and “Great Convergence” Stories," Working Papers w0132, New Economic School (NES).
    4. George Pavlidis & Vassilios A. Tsihrintzis, 2018. "Environmental Benefits and Control of Pollution to Surface Water and Groundwater by Agroforestry Systems: a Review," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(1), pages 1-29, January.
    5. Grzegorz W. Kolodko, 2009. "A Two-thirds Rate of Success: Polish Transformation and Economic Development, 1989-2008," WIDER Working Paper Series RP2009-14, World Institute for Development Economic Research (UNU-WIDER).
    6. Kudrin, A. & Gurvich, E., 2015. "Government Stimulus or Economic Incentives?," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 179-186.
    7. Larysa Tamilina & Natalya Tamilina, 2014. "Heterogeneity in Institutional Effects on Economic Growth: Theory and Empirical Evidence," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(2), pages 205-249, December.
    8. Popov, Vladimir, 2015. "Разрыв Между Югом И Западом По Уровню Экономического Развития Сокращается? [Catching up: Developing countries in pursuit of growth]," MPRA Paper 65893, University Library of Munich, Germany.
    9. Costanzo, Vincenzo & Yao, Runming & Xu, Tiantian & Xiong, Jie & Zhang, Qiulei & Li, Baizhan, 2019. "Natural ventilation potential for residential buildings in a densely built-up and highly polluted environment. A case study," Renewable Energy, Elsevier, vol. 138(C), pages 340-353.
    10. Simachev, Yuri & Kuzyk, Mikhail & Ivanov, Denis, 2012. "Fostering innovation in Russian companies in the post-crisis period: Opportunities and constraints," MPRA Paper 41284, University Library of Munich, Germany.
    11. Sturm, J. & Ennifar, H. & Erhard, S.V. & Rheinfeld, A. & Kosch, S. & Jossen, A., 2018. "State estimation of lithium-ion cells using a physicochemical model based extended Kalman filter," Applied Energy, Elsevier, vol. 223(C), pages 103-123.
    12. VADIM Ponkratov & В. Понкратов В., 2015. "Ресурсный Потенциал Нефтегазовой Отрасли Промышленности России И Стимулирование Повышения Эффективности Его Использования // Towards A More Efficient Use Of The Resource Potential Of The Russian Oil A," Экономика. Налоги. Право // Economics, taxes & law, ФГОБУ "Финансовый университет при Правительстве Российской Федерации" // Financial University under The Government of Russian Federation, issue 3, pages 94-101.
    13. Fofana, Daouda & Natarajan, Sadesh Kumar & Hamelin, Jean & Benard, Pierre, 2014. "Low platinum, high limiting current density of the PEMFC (proton exchange membrane fuel cell) based on multilayer cathode catalyst approach," Energy, Elsevier, vol. 64(C), pages 398-403.
    14. repec:mje:mjejnl:v:12:y:2017:i:1:p:125-140 is not listed on IDEAS
    15. Polterovich, Victor & Popov, Vladimir & Tonis, Alexander, 2008. "Mechanisms of Resource Curse, Economic Policy and Growth," MPRA Paper 20570, University Library of Munich, Germany.
    16. Popov, Vladimir, 2014. "Can Uzbekistan Economy Retain Its High Growth Rates? Scenarios of Economic Development in 2015-30," MPRA Paper 59735, University Library of Munich, Germany, revised 20 Oct 2014.
    17. repec:ecb:ecbrbu:2018:0042:1 is not listed on IDEAS
    18. Okur, Osman & Alper, Erdogan & Almansoori, Ali, 2014. "Optimization of catalyst preparation conditions for direct sodium borohydride fuel cell using response surface methodology," Energy, Elsevier, vol. 67(C), pages 97-105.
    19. Zheng, Ruyi & Li, Shuxia & Li, Qingping & Li, Xiaoli, 2018. "Study on the relations between controlling mechanisms and dissociation front of gas hydrate reservoirs," Applied Energy, Elsevier, vol. 215(C), pages 405-415.
    20. Adam S. Posen & Daniel Popov Gould, 2007. "Has EMU Had Any Impact on the Degree of Wage Restraint?," Palgrave Macmillan Books, in: David Cobham (ed.), The Travails of the Eurozone, chapter 7, pages 146-178, Palgrave Macmillan.
    21. Popov, V., 2011. "Do We Need to Protect Intellectual Property Rights?," Journal of the New Economic Association, New Economic Association, issue 11, pages 107-126.
    22. Viktor Zamlynskyi & Anastasiia Zerkal & Andrii Antonov, 2019. "A Conceptual Framework To Apply Financial Engineering At The Enterprise," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(1).

    More about this item

    Keywords

    investments in personnel development; investment efficiency; evaluation of investment efficiency in personnel; social aspect of investing in company personnel;
    All these keywords.

    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • 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
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

    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:bal:journl:2256-0742:2018:4:3:17. 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: Anita Jankovska (email available below). General contact details of provider: .

    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.