A Product-based Approach to the Formation of Human Capital in Entrepreneurial Organizations

Abstract

The subject of the study is human capital — the most significant resource in the business of organizations, both in terms of cost and value and in terms of impact on the result, and therefore having an increased risk factor due to the potential failures as a result of its changes. There are two principal ways of forming the human capital of an organization: recruitment — attracting candidates from the labor market with the required level of competencies; development — training (retraining) and improving the competencies and professional development of the existing employees. The author proposes to consider the possibility of using a product approach in the work of HR in general and in the process of the formation of the human capital of an organization in particular, to ensure the greatest efficiency and focus on the results through rapid adaptation in the face of sudden unpredictable changes. Considering the applicability of the product approach, the author compares it with the process and project approaches. The relevance of this work lies in the fact that despite a certain interest, of both theorists and practitioners, there is currently a lack of scientific research into the use of the application of the product approach specifically in the field of human capital formation. The purpose of the work is to investigate the possibility of applying the product approach to the process of forming the human capital of an organization from both the theoretical and practical sides, using the example of the largest FMCG (Fast Moving Consumer Goods) companies in the Russian market. Achieving this goal is possible by solving a number of tasks, such as: studying the theoretical base related to the description of the product approach; comparison of the product approach with the most common approaches in the organization of labor — process and project; studying the practical application of the product approach in business in general and in HR in particular. The research methodology is based on general scientific methods: synthesis, analysis, and comparison. The theoretical and methodological basis of this study is the understanding of the conditions of the application of the product approach and its attributes in various business areas. The empirical framework is based on a content analysis of publicly available literature, publications, and studies of consulting companies on the topic of the product approach, available in the public domain. Research results. The results obtained made it possible to explore the possibility of applying a product approach to the process of forming the human capital of an organization using the example of the largest FMCG companies in the Russian market, as well as to develop practical recommendations for transforming the structure and work of the HR department in accordance with the product approach.