HR analytics in the system of effective usage of human capital in an enterprise in the context of modern challenges

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Taras Shevchenko National University of Kyiv

HR analytics in the system of effective usage of human capital in an enterprise in the context of modern challenges

Nosal Oleksandr, PHD student



Abstract

The study focuses on the role of HR analytics as a tool for effective human capital management in organizations. The article aims to investigate the methods of collecting, analyzing and interpreting data on employees and their impact on strategic decision-making in HR; prove that the use of HR analytics can contribute to improving productivity, engagement and general well-being of employees, as well as contribute to achieving the company's business goals in the face of modern challenges.

The article considers the relevance and necessity of using HR analytics as a tool to improve the efficiency of human capital management in enterprises in the context of modern economic and social challenges.

The analysis of theoretical approaches to the definition of the concept of "human capital" and "HR-analytics," highlighting the importance of these areas to increase the competitiveness of the enterprise and adapt to changing market conditions. human capital management employee

A classification of the main methods and techniques of HR analytics that can be used to optimize the processes of attracting, developing and retaining employees is presented.

The article also discusses the benefits of implementing analytical tools in strategic personnel management and developing recommendations for improving the efficiency of work with human resources in the enterprise. The article notes that modern market challenges require HR specialists not only a high level of understanding of business processes, but also knowledge of HR analytics methods for making informed decisions based on objective data.

The article examines examples of implementation of HR analytics by large Ukrainian companies, provides key indicators of HR analytics, offers tools for the introduction of HR analytics by an enterprise to increase the efficiency of using the company's human capital in the face of modern challenges. In the context of the constant change in the business landscape, the article focuses on the strategic role of HR analytics in the formation of flexible and responsible personnel strategies that can quickly adapt to new market conditions and ensure sustainable business.

The main idea of the article is to prove that in the difficult conditions of the present, HR analytics plays a key role in ensuring the long-term success of the organization, helping HR specialists to be not just managers of personnel, but strategic partners who can influence decisions that shape the future of the company.

Keywords: HR, analytics, optimization, staff development, effectiveness, strategic management, human capital, management decisions, the role of analytics.



Introduction

Statement of the problem. HR analytics has become one of the crucial instruments for enhancing the efficiency of human capital management in modern conditions. It is the science of using statistical methods and technologies to analyze data about employees with the aim of increasing productivity, efficiency, and profit. In light of globalization, technological innovations, and changes in the labor market, HR analytics requires a deep understanding and adaptation to these challenges to ensure the sustainability and competitiveness of enterprises.

In the context of Ukraine, HR analytics is important, but still not fully explored. Enterprises are beginning to realize the importance of a strategic approach to human capital management, including the use of HR analytics to improve decisions. Therefore, this article aims to investigate the theoretical foundations of HR analytics and its application in the context of modern challenges.

Analysis of recent publications. The basics of the study of HR analytics, the use of human capital and modern challenges in the context of globalization and digitalization are investigated by foreign and domestic scientists: the difficulties of introducing HR analytics are revealed in the work of Fernandes V. [1]; McCartney S. [2] explored exactly how HR analytics might affect a company's outcome; in the works of Danilenko O. [3], Vonberg T. [4], Grishnova O. [5; 6], Kotsura A. [7] the relevance of introducing an analysis of the possibilities of human capital for enterprises is investigated; the work of Virges F. [8], Edwards M. [9], Marler J. [10], Bassi L. [11] prove that HR analytics is an important aspect of enterprise analytics in general; the basis and basis of HR analytics are described in the works of Zhukovskaya S. [12], Shcherbina O. [13], Vronsky M. [14], Bertash I. [15], Kremer K. [16]. However, the circumstances that have developed in Ukraine after the Covid-19 pandemic and in the conditions of war require in-depth analysis, comparison and selection of the best HR analytics tools that will help the enterprise improve efficiency.

Unresolved parts of the problem.HR analytics and the effective use of human capital in modern conditions play an important role in the progress of enterprises. In the context of the globalization and digitalization of the economy, the management of human capital requires a new approach that takes into account the complexity and multifaceted nature of the contemporary labor market. Technological changes, particularly automation and robotization, lead to a reorientation of HR's role and necessitate adaptation to new conditions.

For Ukraine, this issue is especially relevant. The war, a sharp and significant decrease in the population, structural and economic transformations taking place in the country require enterprises to effectively manage human resources, which in turn includes an adequate response to technological challenges and changes in the labor market. The use of HR analytics can help enterprises in Ukraine better understand their human resource needs, optimize personnel management processes, and increase overall efficiency.

However, in Ukraine, there remains an unresolved problem of insufficient development of HR analytics, caused, among other things, by a lack of appropriate skills among HR specialists and an insufficient level of digital technology use. This underlines the need for further research and the development of effective methods for implementing HR analytics in human capital management.

The purpose of the article is to explore methods of collecting, analyzing, and interpreting data about employees and their impact on strategic decision-making in HR; to prove that the use of HR analytics can contribute to improving productivity, engagement, and overall well-being of employees, as well as contribute to achieving the business goals of the company in the context of modern challenges.

Research methodology. The following research methods were used to achieve the set goal: the abstract-logical method was used to create an updated classification of modern personnel technologies aimed at optimizing human capital management; abstract-logical and comparative analysis was applied to reveal the essence and characteristics of concepts such as HR analytics, effective use of human capital, and challenges in personnel management in the conditions of war in Ukraine, globalization, and digitalization worldwide; the monographic method was used for a deeper study of specific aspects of modern HR technologies and their impact on the efficiency of personnel management; the dialectical method and methods of theoretical generalization were used to formulate conclusions, determine the prospects for the development of innovative technologies in the field of HR in the context of modern challenges.



Research results

HR analytics encompasses a range of methods and procedures that help enterprises better understand their employees and their contribution to the overall success of the company.

The main directions of HR analytics include, but are not limited to, analysis of productivity, employee satisfaction, staff turnover, and data analysis for planning staff development.

HR analytics assists enterprises in using data to address important personnel-related issues. This can include forecasting the need for new employees, identifying reasons for terminations, or determining the effectiveness and efficiency of various departments or positions.

It's also important to emphasize that the use of HR analytics research results by companies becomes especially important and relevant as competition for talented employees in scarce and indemand specialties intensifies. At the same time, many companies that have long been collecting employee data still have not learned to use it correctly in the field of personnel management [4, p. 59].

The following stages of HR analytics should be highlighted.

The first and one of the key stages of HR analytics is the collection and analysis of data. Typically, this means gathering data from various sources, such as employee surveys, performance data, as well as data from other sources, such as social media or publicly available sources.

After data collection, HR analytics involves analyzing this data using statistical methods. This may include correlation analysis, regression analysis, cluster analysis, or other methods, depending on the specific needs of the enterprise.

An important, targeted means of HR analytics is to use the obtained results to support decision-making. This can involve using results to develop strategies for attracting and retaining staff, career planning, or improving personnel management processes.

The final, resultant stage is using HR analytics to evaluate the effectiveness of decisions. This can include tracking the impact of changes on productivity, employee satisfaction, or other key performance indicators.

There are many models and approaches to HR analytics, and their choice can largely depend on the specific goals and needs of the enterprise. However, many approaches have common elements, such as data collection, analysis, using results to support decisions, and evaluating the effectiveness of those decisions.

An important tool of HR analytics is the use of technologies to collect, analyze, and present data. Modern IT solutions can significantly simplify these processes, giving HR professionals the ability to perform more complex analytical tasks and obtain more detailed information about their employees.

However, despite the significant potential of HR analytics, its implementation may face a number of challenges. These can be technical challenges, such as insufficient data quality or a lack of necessary skills among HR specialists. But they can also be organizational challenges, such as resistance to change or insufficient support from management.

HR analytics plays a crucial role in the usage of human capital, as it helps enterprises better understand their employees and how their actions affect the overall success of the company. Specifically, HR analytics can help enterprises identify which skills and abilities are most important for success and accordingly direct their efforts towards achieving their strategic goals.

Human capital management has become one of the key aspects of the success of modern enterprises. In the light of constant changes in the business environment, enterprises are increasingly recognizing the importance of attracting, developing, and retaining talented employees. In this context, HR analytics can play a pivotal role, helping enterprises to better understand their employees and their impact on the overall success of the company.

HR analytics can assist enterprises in identifying and addressing issues that negatively affect employee satisfaction and productivity. It encompasses a wide range of issues: from determining factors that affect employee satisfaction and retention to identifying the most effective strategies for training and development.

For successful use of HR analytics, enterprises need to create a culture that supports data- driven decision-making. This includes developing relevant skills among HR professionals, implementing appropriate IT solutions, and ensuring support from management and staff [12, p. 31].

Enterprises must also be aware of potential problems and challenges associated with HR analytics. This may include technical challenges such as collecting, processing, and analyzing large volumes of data, as well as ethical challenges such as the protection of employee data and confidentiality.

Despite these challenges, HR analytics can provide enterprises with significant advantages, which are listed in Table 1.

Table 1

Advantages of HR Analytics

№	Advantage of HR Analytics	Description
1	Increase in labor productivity	HR analytics helps identify factors influencing productivity and develop strategies for optimization.
2	Effectiveness of decisionmaking	Through analytical data, management can make informed and effective decisions regarding personnel management.
3	Reduction in employee turnover	Data analysis allows the identification of reasons for employee turnover and the development of strategies for talent retention.
4	Optimization of the hiring process	HR analytics contributes to the improvement of the candidate selection and assessment process, increasing the likelihood of hiring the most suitable employees
5	Improvement in employee training and development	Analytics helps identify training and development needs and assess the effectiveness of training programs.
6	Increase in employee satisfaction	Analytics can pinpoint factors affecting employee satisfaction and contribute to the development of measures to enhance it.

Source: Suggested by the author.

HR analytics can help enterprises better understand their employees, identify and resolve issues before they become serious, and make more informed and effective decisions regarding personnel management.

Furthermore, HR analytics can help enterprises better understand the motivation of their employees, identify potential issues in the work environment, and develop programs to increase employee satisfaction and engagement.

The application of HR analytics can be particularly useful in assessing the impact of specific programs and initiatives on employee productivity and satisfaction. For example, enterprises can use HR analytics to measure the impact of training and development programs, changes in compensation structures, or new work processes.

HR analytics can also help enterprises forecast and plan for future staffing needs. It can assist enterprises in determining which skills and competencies will be needed in the future, as well as in identifying the best ways to attract, develop, and retain employees with these skills.

It is important to note that HR analytics is not a substitute for human judgment or intuition. It is a valuable and convenient tool that can help HR professionals and business leaders make more substantiated, objective, and effective decisions.

The primary goal of HR analytics is to improve employee performance, efficiency, and satisfaction. To achieve these goals, an enterprise may use HR analytics to identify the main challenges faced by employees and develop strategies to address them.

For example, HR analytics may reveal that employees with certain skills or experience are more productive or more satisfied with their work. Based on this data, the enterprise can focus its efforts on attracting, developing, and retaining employees with these attributes.

The collection and analysis of employee data in HR analytics includes a number of methods and tools. Consider the main ones:

Data collection methods:

1. Collect feedback: regular surveys of employees about their satisfaction, engagement and feedback about the working environment.

2. Analysis of information about employees: study of information on personal matters, such as employment history, skills, achievements, results of assessments, etc.

3. Performance monitoring systems: using software to track and analyze employee performance.

4. Learning management systems (LMS): collecting data on professional development courses that employees take and the results of these exercises.

5. Analysis of staff turnover: collection of statistical data on the reasons for the dismissal of employees.

6. Working time tracking: the use of time management systems to collect data on working hours, breaks, vacations and sick leave.

Methods of data analysis:

1. Statistical analysis: includes the calculation of means, medians, standard deviations, correlations, regression models and other statistical tests to identify trends and associations between different variables.

2. Data visualization: Create graphs, charts, heat maps, and other visual aids that make it easy to interpret complex data combinations.

3. Textual analysis: processing of open answers in questionnaires, feedback, summaries, etc., using natural language processing techniques to identify key topics and moods.

4. Benchmarking: comparison of performance indicators with industry standards or indicators of other enterprises to determine the company's position in the labor market.

5. Impact analysis: study of the impact of HR initiatives on business indicators such as productivity, sales, profitability, etc.

Successful data analysis requires the use of appropriate tools and systems, such as HR information systems (HRIS), business intelligence systems and other software solutions that allow you to efficiently process large amounts of data and extract valuable insights from them.

The use of HR analytics can be particularly beneficial for large enterprises with a large number of employees, where it can be difficult to track and analyze information about large groups of employees. However, even smaller enterprises can benefit from HR analytics, as it will help them better understand their employees and use this information to improve their personnel management strategies.

Overall, HR analytics plays an important role in the usage of human capital, helping enterprises better understand their employees, solve problems, improve productivity and satisfaction, and make more informed and effective decisions.

The modern business world is characterized by rapid changes and constant challenges. This creates new demands for HR analytics and affects how organizations utilize it for managing human capital. It also necessitates constant adaptation of HR analytics to these changes.

Several key factors underlie these changes that impact HR analytics.

The first factor is technological progress. With the advancement of technology, especially in the field of information technology, HR analytics becomes increasingly complex and sophisticated. This helps analyze more data and make more accurate forecasts.

The second factor is the consequences of Covid-19. The pandemic has brought adjustments to business conditions, shifting the focus to online formats.

The third factor is globalization. It poses additional challenges for HR analytics as companies increasingly have employees in different countries with different cultural and legal norms. This requires greater flexibility and adaptability from HR analytics.

The fourth factor is warfare. Unfortunately, due to the onset of full-scale invasion, companies across the country had to adapt to new challenging circumstances and work on risk diversification.

The fifth factor is the regulatory environment. Changes in legislation, regulations, and standards may require HR analysts to change their approaches to data collection, processing, and analysis. This is particularly relevant for countries where data protection legislation is constantly changing, as is the case in the European Union, for example.

Another important factor is labor market competition. With increased competition, companies are increasingly using HR analytics to attract, retain, and develop the best talents.

HR analytics not only helps identify the most productive employees but also identifies the reasons behind their high productivity, enabling the development of effective motivation and development strategies.

The impact of social and economic factors is also worth noting. Social changes, such as the rise of corporate social responsibility, are changing the requirements for HR analytics.

Nowadays, it is important to understand not only how employees impact company performance but also how the company impacts its employees and society as a whole.

Economic factors, including economic crises, also have a significant impact on HR analytics. In conditions of economic instability, HR analytics helps companies quickly adapt to changes by finding optimal solutions with limited resources.

Therefore, various factors in the modern business environment make HR analytics increasingly important for successful human capital management. The use of HR analytics allows companies to adapt more effectively to changes and provides them with competitive advantages.

Analyzing the situation in Ukraine, it can be noted that HR analytics is still gaining momentum here. However, there are already examples of companies successfully applying HR analytics.

A well-known example is the company "PrivatBank" which uses HR analytics to forecast and plan staffing needs, as well as to analyze employee performance.

Another example is the IT company "SoftServe," which uses HR analytics to identify key competencies necessary to achieve business goals. Another example is the company "Nova Poshta," which uses HR analytics to forecast and plan its staffing needs, helping it to manage its human capital more effectively [14, p. 295].

These examples show that despite various challenges, HR analytics is developing in Ukraine and has already produced positive results for companies that have implemented it.

Therefore, HR analytics is already being used in various sectors in Ukraine, including retail, IT, and education, and continues to gain momentum. Despite challenges related to technological changes, cultural differences, and regulatory environments, companies that implement HR analytics are already seeing positive results.

It is also worth noting that HR analytics not only helps Ukrainian companies effectively manage internal resources but also compete at an international level. For example, the company "MHP," a leader in the agricultural sector in Ukraine, uses HR analytics to optimize its global structure and enhance the efficiency of its international teams.

Finally, HR analytics helps Ukrainian companies adapt to rapid changes in the labor market. For example, "Ring Ukraine," a company specializing in security systems, uses HR analytics to forecast changes in the skills required by its employees and to plan its training and development strategy.

Hr analytics in Ukraine is not only an important tool for effective human capital management but also a key factor influencing the competitiveness of companies at an international level.

Ukrainian companies that implement HR analytics successfully use it to forecast staffing needs, optimize hiring processes, assess productivity, plan employee career growth, and enhance team effectiveness.

All of this demonstrates that HR analytics in Ukraine has great potential for further development and can play a crucial role in overcoming the challenges facing Ukrainian companies in the context of globalization and technological changes.

The relevance of analytical tools for Ukraine is illustrated in table 2.



Table 2

The relevance of HR analytics indicators in wartime conditions.

HR Analytics indicators	The relevance in wartime conditions	Reasons
Forecasting specialist staffing needs	High	Population emigration, mobilization
Assessing employee productivity	High	The need for maximally efficient resource usage
Career development planning	Low	Instability and unpredictability of the situation
Analysis of staff turnover	High	The necessity to retain and motivate key employees
Analysis of employee well-being	High	Supporting the morale of employees in wartime conditions

Source: Suggested by the author.

HR analytics is an innovative tool that is changing the trends of modern personnel management. With its help, organizations can transform vast amounts of data about their employees into valuable information that influences decision-making and shapes business strategies. From talent acquisition to development and retention, HR analytics provides leaders with tools to improve productivity, engagement, and overall workforce effectiveness.

The implementation of HR analytics can significantly enhance the efficiency of the enterprise, as it provides a deeper analysis of employee data, which in turn allows you to better understand how personnel management affects the overall performance of the company.

With the help of HR analytics, you can identify the most effective strategies for hiring personnel by examining where the best candidates come from and which assessment methods are the most productive. You can also develop strategies to reduce employee turnover by analyzing the reasons why they left the company and finding effective ways to increase employee loyalty and satisfaction.

HR analytics also helps optimize staff costs by providing salary and other compensation analysis, and there are opportunities for more efficient resource allocation. This may include changes in the remuneration structure that not only reduce costs, but also increase employee motivation.

Using data on staff performance, it is possible to identify key factors affecting productivity and implement changes that will improve work processes and working conditions. In addition, HR analytics helps companies better manage HR risks by identifying potential problems before they lead to serious consequences.

Providing the company's management with reliable information, HR analytics improves the quality of personnel decision-making. This can relate to various aspects - from recruitment and development of personnel to optimization of workplaces and improvement of the relationship between employees and management.

Finally, HR analytics promotes strategic planning, allowing you to anticipate future personnel needs and respond to market trends more flexibly and efficiently. Using data on the level of involvement and culture of the company, you can also form more cohesive and productive teams.

In general, HR analytics transforms traditional personnel management into a more dynamic and data-driven process that contributes to the overall efficiency of the enterprise.

The article Academy to innovate HR [18] examines 15 cases that confirm the positive impact on business performance through HR analytics.

As an example, we can separate the case of "Flight risk at IBM," the analysis was conducted at IBM, where staff turnover was high for certain important positions for business. Using IBM Watson's machine learning capabilities, a team of workforce analysts developed an algorithm that included sources such as hiring data, tenure, service promotion history, performance, position, salary, location, position, etc. The company also took into account employee sentiment measured through their social pulse. The hypothesis was that interactions with social media could decline when employees think about quitting. Investments brought in $ 300 000 000 over four years, and turnover in critical positions decreased by 25%. According to the report, productivity also improved, and hiring costs fell [18, 19].

Confirms the relevance and necessity of using HR analytics in the company's activities and international studies of MIT Sloan Management Review [17] conducted with the participation of IBM Institute for Business Value (the survey involved about 3,000 managers and analysts from different industries and countries). The results showed that companies that use analytics tools in their activities are five times more productive and successful than those that only partially (at the level of descriptive models) use HR analytics in their company [14, p.297].

Success in implementing HR analytics depends on many factors, including the data culture within the company, the presence of qualified analysts, and ethical considerations in the collection and processing of employees' personal data. If these requirements are met, HR analytics can help companies fully realize their human potential, ensuring sustainable growth and competitiveness in the market [16, p.62].



Conclusions

Thus, HR analytics is no longer just a trend in personnel management but is becoming a standard for organizations striving to improve their processes and achieve strategic goals.

The development of digital technologies and analytical tools opens up new opportunities for understanding and utilizing human capital, which is a key asset of any organization.

With HR analytics, companies can not only identify weaknesses and improvement opportunities but also use this data to create added value and achieve a competitive advantage.

HR professionals are faced with the task of integrating analytics into all aspects of personnel management.

From recruitment to the moment when an employee leaves the company, every stage of the employee life cycle can be optimized using data, which in turn requires HR departments to have not only technical skills but also a deep understanding of business processes and strategies.

However, as the use of HR analytics grows, so does the responsibility for ethical data usage.

Companies must be prepared to transparently communicate with employees about how their data is collected and used.

Considering employees' interests will be key to maintaining trust and a positive attitude towards analytical initiatives.

In conclusion, HR analytics opens up broad perspectives for transforming human resource management. Its active use and continuous improvement helps organizations build a healthier and more productive work environment and contributes to the achievement of strategic business goals.

As a result, HR analytics becomes not only a tool for measurement and analysis but also an important element that shapes the culture and future of organizations.

Prospects for further research. In the further research, the aim is to investigate the best practices of HR analytics tailored for application by Ukrainian enterprises in contemporary conditions. The goal is to select the most effective HR analytics tools for implementation based on the scale of enterprises and sectors of the economy.



References

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8. Wirges, F., & Neyer, A. K. (2023). Towards a process-oriented understanding of HR analytics: implementation and application. Review of Managerial Science.

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12. Zhukovska, S. Hr-analityka yak instrument upravlinnia biznesom ta vymiriuvannia efektyvnosti investytsii. Zhukovska, S. (2023). Hr-analityka yak instrument upravlinnia biznesom ta vymiriuvannia efektyvnosti investytsii. Ivan Franko National University of Lviv

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14. Vronskyi, M. O. (2020). Zmist katehorii HR-analityka ta yii rozvytok v ukrainskykh kompaniiakh. Visnyk studentskoho naukovoho tovarystva DonNU imeni Vasylia Stusa.

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Анотація

HR-аналітика в системі ефективного використання людського капіталу підприємства в умовах сучасних викликів

Носэль О.М., аспірант

Київський національний університет імені Тараса Шевченка

Дослідження фокусується на ролі HR-аналітики як інструменту для ефективного управління людським капіталом в організаціях. Метою статті є дослідити методи збору, аналізу та інтерпретації даних про співробітників та їх вплив на стратегічне прийняття рішень в HR; довести, що використання HR-аналітики може сприяти покращенню продуктивності, залученості та загального добробуту працівників, а також внести вклад у досягнення бізнес-цілей компанії в умовах сучасних викликів.

У статті розглядається актуальність та необхідність використання HR-аналітики як інструменту для підвищення ефективності управління людським капіталом на підприємствах у контексті сучасних економічних та соціальних викликів.

Проведений аналіз теоретичних підходів до визначення поняття "людський капітал" та "HR-аналітика”, висвітлюють важливість даних напрямків для підвищення конкурентоспроможності підприємства та адаптації до змінюваних умов ринку. Подано класифікацію основних методів і технік HR-аналітики, які можуть бути використані для оптимізації процесів залучення, розвитку та утримання працівників. Також у статті обговорюються переваги впровадження аналітичних інструментів в стратегічне управління персоналом та розробка рекомендацій щодо підвищення ефективності роботи з людськими ресурсами на підприємстві. В статті наголошується, що сучасні виклики ринку вимагають від HR-фахівців не лише високого рівня розуміння бізнес-процесів, але й знання методів HR-аналітики для прийняття обґрунтованих рішень, що базуються на об'єктивних даних.

У статті розглядаються приклади впровадження HR-аналітики великими українськими компаніями, наводяться ключові показники HR-аналітики, пропонуються інструменти для впровадження HR-аналітики підприємством для підвищення ефективності використання людського капіталу підприємства в умовах сучасних викликів. В контексті постійної зміни бізнес-ландшафту, в статті акцентована увага на стратегічній ролі HR-аналітики у формуванні гнучких та відповідальних кадрових стратегій, здатних швидко адаптуватися до нових умов ринку та забезпечити стійке ведення бізнесу.

Основною думкою статті є доведення, що у непростих умовах сьогодення HR-аналітика відіграє ключову роль у забезпеченні довгострокового успіху організації, допомагаючи HR-фахівцям бути не просто керівниками персоналу, а стратегічними партнерами, здатними впливати на рішення, що формують майбутнє компанії.

Ключові слова: HR, аналітика, оптимізація, розвиток персоналу, ефективність, стратегічне управління, людський капітал, управлінські рішення, роль аналітики.

Размещено на Allbest.ru