IMPACT OF HUMAN RESOURCES’ “ENERGY” ON THE DEVELOPMENT OF BUSINESS ENTITIES

Abstract

The purpose of the paper is to define the impact of human resources’ “energy” on the development of business entities based on the physical concept of kinetic and potential energy. Methodology. Mathematical dependencies for determining kinetic and potential energy are applied in the study. The first step to identify the impact of human resources “energy” on communities’ performance and development is to sort them into four groups based on analytical tools. The next step in the process of community’s energy influence on its performance and development is the application of discriminant analysis. Discriminant analysis is used to group and define the nature of the correlation between the number of human resources and business entity’s development rate. Mathematical transformations of kinetic and potential energy formulas allowed defining the characteristics of correlation between the number of group members and the level of interactions: direct or inverse relationship. Singling out and grouping allowed to establish the fact of the existence of the correlation between the rate of development and the number of human resources, as well as the nature of the relationship. Four groups of communities were singled out on the basis of analytical tools and discriminant analysis application: with high kinetic energy rate and considerable number of community members; with low kinetic energy rate and inconsiderable number of community members; with low kinetic energy rate and considerable number of community; with high kinetic energy rate and inconsiderable number of community members. We proposed the approach to assess the potential energy rate. It can be used to quantify the “energy” of interactions, which is characterized by qualitative indicators. The data used in the study is the information of statistical databases illustrating business entities’ functioning. Results of the survey showed a direct correlation between the kinetic and potential energy of human resources, that is, between business entity’s development and the level of its components’ interactions. Practical implications. Identification and quantitative assessment of business entities’ human resources “energy” require working out an effective mechanism for managing human resources’ “energy” to preserve and develop it in the future. This causes chain reaction, contribute to the achievement of high efficiency and effectiveness of their activities in the future. Value/originality. While human resources are a concept that reflects the key wealth of any society, the ability to manage the collective mental energy embodied in human resources, is scarcely studied. It is a gap we strive to fill in this manuscript.