CC BY
13
Baltic Journal of Economic Studies
--- Vol. 8 No. 3, 2022
DOI: https://doi.org/10.30525/2256-0742/2022-8-3-210-219
TRANSFORMATIONAL CHANGES IN ORGANIZATIONAL MANAGEMENT AND HUMAN RESOURCES IN THE DIGITAL AGE
Alla Cherep1, Valentina Voronkova2, Olena Androsova3
Abstract. The relevance of research into transformational change in organizational management and human resources in the digital age is significant in the digital age, as organizations need to develop a humanistic approach to human resources. To do this, it is necessary to change all the bottom-up management mechanisms to create an effective functioning organization in which the person is the subject of all processes. All of this suggests that modern business must be adaptive, customer- and person-centered. The transformational processes taking place due to the impact of ICT on the development of human resource management show that it is something between online and offline, a combination of the digital and physical world. To date, there are no companies in which the anthropocracy conceptual works, there are no step-by-step instructions on how to switch to amocracy. The purpose of the research is theoretical and practical transformational changing aspects in the organizational management and human resources in the digital age. Study results. 1. The impact of ICT on the development of trends in the global transformation of human resource management. 2. The place and role of organizations in transformational change are disclosed. 4. The directions of implementation of the European vision of human resource management as a factor in the development of IT trends in the digital age are clarified. 5. The concept of personnel management as a factor in the development of humanistic principles under conditions of transformational change is formed. 6. The impact of ICT on the innovative development of regenerative economy and humane human resource management is analyzed. It is concluded that business today should be adaptive and client-oriented, client-oriented and people-oriented. In a democracy, the organization is a tool that people use to improve their lives, the main issue of bureaucracy is how to get people to better serve the goals of the organization. Leaders must adopt new people-centered principles and apply them to their organizations. The development of cloud platforms will help create products with a fundamentally new architecture - more flexible and scalable. The model of organization based on the concept of anthropocracy is a humanistic view aimed at people, relationships, empowerment, competence development, "the person who stands above everything." At the heart of aorganizational activity is a redefinition of economics as a subsystem of society and nature, as a tool for achieving a socially just and environmentally sustainable future, and a humanistic approach to managing organizations and human resources.
Key words: transformational changes, organization management, human resources management, digital age. JEL Classifications: A13, B49, O39, P16, P49, Z10
1. Introduction
The relevance of the research topic is that we live in a changing world, where the future is no longer an extrapolation of the past, and change is inexorable, because this is an era of upheaval. Over time, the rate of transformation of matter into more complex structures and systems gradually increases. The research
1 Zaporozhzhia National University, Ukraine (corresponding author) E-mail: cherep.av.znu@gmail.com
ORCID: https://orcid.org/0000-0001-5253-7481
2 Engineering Educational and Scientific Institute
named after Y.M. Potebnya of Zaporozhzhia National University, Ukraine E -mail : valentinavoronkova236@gmail.com ORCID: https://orcid.org/0000-0002-0719-1546
3 Zaporizhzhia National University, Ukraine E-mail: androsovaEF@gmail.com
ORCID: https://orcid.org/0000-0002-2727-2474
and consulting company Gartner (USA) annually compiles a list of the most promising IT trends that can be useful for the development of innovative digital organizations and human resource management. A systematic analysis of the most promising IT-trends for innovative digital organizations includes the following areas for their development:
This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0
1. Generative artificial intelligence.
2. Data factories.
3. Cloud platforms.
4. Decision-making intelligence.
5. Cybersecurity network.
6. Software components.
7. Hyperautomation.
8. Artificial intelligence development.
9. Aggregate experience.
10. Autonomous systems.
11. Distributed enterprises.
12. Calculations for increased privacy.
The use of modern IT trends will ensure the sustainable development of organizations and the possibility of creating a stable technical base with great human potential. In turn, this will allow enterprises to optimize their costs and increase investments in digital technology (Voronkova, et al., 2021).
The purpose of the research is theoretical and practical aspects of transformational change in organizational management and human resources in the digital age and the impact on them of information and communication and computer technology.
Formation of the goals of the article (goal setting):
1. To determine the impact of ICT on the development of the global transformation of human resource management.
2. To identify the place and role of organizations in transformational change.
3. To clarify the directions of implementation of the European vision of personnel management as a factor in the development of IT-trends in the digital age.
4. To form the concept of personnel management as a factor in the development of humanistic principles under conditions of transformational change.
5. To analyze the impact of ICT on the innovative development of a regenerative economy and humane human resource management.
Research methodology - analytical methods and synthesis, modeling and forecasting, system and structural analysis, the use of synergistic approach. Analysis of recent studies and publications, which started to solve this problem and on which the author relies. (Cherep A., et al., 2019).
Therefore, to cure the ills that plague organizations, the bureaucratic model of management must be radically rethought. To create flexible, creative, and successful organizations, completely new approaches to the coordination of human labor are needed. People, not structures, processes, and methods, must be at the core of the organization. Instead of a model that seeks to maximize control to make the organization more efficient, we need a model that maximizes each employee's contribution to the process. Bureaucracy should be replaced by bureaucracy, because in an organization, people are
above all, and in a bureaucracy, people are the tools with which people create goods and services (Voronkova, Cherep A., et al., 2022).
2. The impact of ICT on the development of the global transformation of human resource management
ICT influence the global transformation of business development, the economy, human resource management developing in the context of system methodology and Agile management, which must be adaptive, especially in the global transformation of business, banking and retail, associated with highly professional and competent professionals, activities that develop in the context of goods and services to end users. With new technology and globalization leading to transformational change, there are deeper processes going on: consumer behavior is changing, business now has to transform itself in order not to miss out on new opportunities. Digital transformation and globalization promote competition in business, thanks to technological development, which leads to competition with China, South Africa and South America. The entire Western world has already become a subject of the digital world. The trends taking place today in the context of ICT influence the development of trends in global transformation of human resource management and business transformation.
The first trend is a decrease in the operating cost of business, which depends on the company avoiding paperwork, seals, and signatures to improve overall efficiency. Here it is important to understand that there is an end point, because it is impossible to reduce costs indefinitely (Cherep O., et al., 2022).
The second trend is the ability to use technology to improve contact and relationships with customers, and here companies can get almost endless opportunities to become more competitive and increase revenue, which is why companies need to have a highly competitive workforce. Right now almost everyone is busy cutting costs, but when companies realize what they have accomplished in this area, they will have to think about increasing revenues. And here it is very important to improve contacts, the quality of dialogue and relationships with customers, for which the quality of staff training is also important.
To do this, it is necessary to abandon the balance sheet and product-oriented business models and move to customer- and person-oriented models. If previously the key business objectives were to produce something massively and cheaply and distribute it to the widest possible audience, now it is customer relations, dialogue and constant contact with the consumer that are important.
The third trend is something between online and offline, which has resulted in digital - a combination of digital and physical experiences. Banks have a large network of branches, retailers also have a very large physical presence, and thanks to digitalization, customers have come to love online shopping, video meetings. During the pandemic, this transformation accelerated, because it was important for a person to be able to come to some physical location to solve a complex problem that could not be solved remotely. Or in order to get new knowledge in a "human" format, consultation, implementation of some plans, improvement of the quality of one's life, it was necessary to consult with highly professional specialists. So - the purpose and role of physical points of presence for dialogue with clients in the near future will change greatly. Those companies that can do it faster than others will have a big competitive advantage.
If classical management theories, old business models were aimed at stability, then in today's digitalization and globalization conditions business technologies must be adaptable to humans. Customers' needs, preferences, and behaviors are changing rapidly today, so by the time the technology is launched, it may be obsolete. Unlike local financial institutions, banks have advanced in their approaches, processes and technologies to develop global HR transformation trends. Many projects are being developed in the banking industry: how to serve customers remotely, how to set up Internet technologies, how to use self-service channels, ATMs. All these technologies are new, as banks started to develop new sales processes, new tactics and approaches to pricing, which changed clients' expectations and their level of advancement in the market, which changed the market as a whole (Cherep O., et al., 2022).
The fourth trend is Big Data, accumulated by multiple systems within large organizations or gathered from various parts of the World Wide Web as raw material, providing new opportunities for new business development based on information technology. What economists call market imperfections are often driven by information asymmetries and the inability of decision makers to gather relevant data about new market opportunities, potential acquisitions, price differentials among vendors, and other aspects of how digital technology works. Such market failures often allow intermediaries and companies with large volumes of relevant and well-organized information to make more profits by creating and merging companies whose business is based on the use of accumulated data.
Many markets, from the airline market to the stock market, have become more transparent thanks to the Internet, but there are many other markets
that still need similar changes. One of them is the real estate market, because real estate agencies provide sellers and buyers with incomplete information and therefore thrive. In addition, the accumulation of information through the introduction of electronic processes can lead to byproducts or so-called "residual data" that companies can also use for profit.
Another type of information business, which is exclusively associated with the accumulation and visualization of information. Companies that expect to take advantage of the imperfections of the information market must be able to assess the effect of moving to new levels of information transparency, which are constantly opening up in today's information technology economy. All this suggests that modern business should be adaptive and client-oriented, that is, first and foremost client- and person-oriented (Kyrychenko, et al., 2021).
2. The place and role of organizations in terms of transformational change
Organizations today are living human organisms that are holistic information systems undergoing transformational changes in the digital age. These changes are leading to dramatic changes in the capabilities of computing resources and networking platforms. The digital age shows rapid changes in the digital life of every country, indicating its evolution and rapid development. Yes, the latest iPhone has about 6,000 times more transistors than the i486 chip that powered computers in the late 1980s.
In 2017, global Internet traffic was more than 46,600 gigabytes per second, a nearly 40 million-fold increase since 1992. This rapid growth has opened up exciting new horizons for organizations as machines have become much more powerful with more computing power to process data. Gradually, entirely new industries were born, such as social networking, which allows people to interact with each other like never before. The waves of this technological explosion are reflected everywhere: in online commerce, the sharing economy, synthetic biology, augmented reality, artificial intelligence, 3D printers, and the Internet. The digital age is evolving rapidly: when the first wave has almost subsided, new ones are rolling in. In the next few years, more than one trillion devices will be connected, and almost the entire planet will become touch-sensitive. In this whirlwind of digital transformation, the most important question for every organization is: Are organizations and employees changing as fast as the world around us? In most organizations, the answer will be no (Cherep O., et al., 2022).
Managers like to attribute this maladaptability to the human factor, but people in general do not resist
change, but rather depend on it. Humans are the source of disruption. The evolution of organizations has been as follows. Only 11 percent of the companies on the list of the top 500 corporations with the highest gross revenues in 1955 remain on that list today. The average age of companies on the list of the 500 largest-cap corporations was 60 years old in 1950, and it is now less than 20 years old. Between 2010 and 2019, U.S. companies reported spending $550 billion on restructuring, usually the result of belated attempts at strategic renewal.
There is a consistent pattern that the digital world is evolving faster than most companies have time to adapt to it. Every day, companies are updating their products or production processes, trying to cope with outdated management practices, constantly closing facilities, downsizing, and merging with their competitors. In the digital age, the place and role of organizations requiring "transformational change and benefits" that can transform over time, so the ability to change is a hallmark of the digital age. The task of organizations is to unlock the creative potential of employees and direct it in an effective direction, to prevent the absorption of organizations, organizations must become a beacon of innovation (Voronkova, Nikitenko, et al., 2022).
A 2018 Gallup poll found that only one-third of U.S. workers are enthusiastic and dedicated, 53 percent are dissatisfied with their jobs, and 13 percent are indifferent. Globally, those numbers are 15, 67 and 18 percent, respectively. Every organization expects employees to perform at three levels:
1) basic security rules, financial discipline and customer service;
2) diligence, as organizations need employees who are willing to perform complex operations and take responsibility for the results of their activities;
3) competence and staff professionalism. Team members must have certain skills in order to do their jobs effectively, and while humility, hard work, and competence are important qualities, they are rarely of great value. It takes more than that to win in the creative economy of the digital age. Organizations need proactive activists who don't wait to be asked, don't limit themselves to their direct responsibilities. This requires people who can look at challenges differently, propose new solutions, and use creativity (Kyrychenko, et al., 2021).
At the top of the organizational pyramid. The pyramid has the following characteristics: 1) obedience; 2) hard work; 3) competence;
4) initiative; 5) creativity; 6) courage. The qualities located in the highest pyramid are the result of dedication to something that inspires, that deserves a certain amount of dedication. Initiative, creativity and courage cannot be shown by command, an organization will not have evolutionary advantages
even without innovative leaders. If executives want to build an innovative organization that looks boldly to the future, it all depends on having a staff full of energy, enthusiasm, and willingness to work. Each employee must set a goal: to grow, to enjoy their work, to be creative and creative, and to use recipes for success for the good of the organization.
According to the Gallup Institute, 89 percent of employees are satisfied with what they do; 70 percent of employees' enthusiasm depends on their managers; 51 percent of Americans in management positions are not too concerned about their jobs, and 14 percent are completely indifferent. Many organizations on the planet suffer from the same ills of inertia, awkwardness, and moral decay because they operate under the same bureaucratic scheme. Many organizations lack humanity, humanistic approach to personnel, use of their originality, lack features of anthropocracy management. It is no coincidence that M. Weber wrote that bureaucracy becomes stronger when everything human, personal, irrational and emotional is eradicated, when it suppresses the human component and absorbs human souls. The aim of bureaucracy now is to turn people into programmable robots.
3. Directions for the implementation of the European vision of personnel management as a factor in the development of IT-trends
The directions of implementation of the European vision of personnel management as a factor in the development of IT-trends are implemented in the context of the development of the most modern technologies and are concentrated around the following digital technologies.
1. Generative Artificial Intelligence, one of the most promising types, is a machine learning method in which a neural network processes a certain array of data (text, images, video) and creates original content based on it. Generative AI has great potential for developing new content in many areas, from advertising and marketing to programming and medicine. In 2025, this technology will account for at least 10% of all produced content, it can become an effective tool for content creators, in the near future this technology will create different types of content according to specified parameters: descriptions, tags and more. To date, the DALL-E neural network already copes with this task, which is able to visualize text by successfully selecting similar images (text-to-image) (Voronkova, & Cherep A., et al., 2022).
2. Data factories are intermediary B2B services between IT platforms and client companies that help coordinate data exchange between market participants, increase data processing efficiency and storage reliability, optimize scalability, and enable faster
implementation of new technologies and bring them to ROI. Built-in analytics modules allow you to process information accurately and quickly. The Data Factory reduces the time and cost of integrating data from the various systems used by businesses: CRM, ERP, HRIS, whose services are increasingly in demand due to the ever-growing volume of data and the lack of skilled personnel in the field of Data Science and Data Engineering. With their help, companies can scale their business more efficiently without fear of encountering growth problems due to improperly designed infrastructure.
3. Cloud platforms have been considered a promising trend for many years, they are increasingly being used, in particular, the share of services and applications created in the cloud infrastructure is growing significantly. This will provide them with flexible use of resources for faster, more reliable and affordable development and maintenance of IT solutions.
4. Intelligent decision-making is a structured decision-making method that combines data science and social science theory. The development of this discipline will help to effectively scale machine learning technologies, with each decision presented as a set of processes to analyze actions, receive feedback, and adjust them based on the information obtained. Decision intelligence makes it possible to automate the decision-making process, involving artificial intelligence technology and the appropriate human resources. The particular interest method is to large businesses because it allows companies to make management decisions faster and more accurately, reducing the risk of errors due to the "human factor"(Cherep O., et al., 2022).
5. Cybersecurity Network - provides a flexible, distributed and integrated security architecture for companies, as enterprises need to decentralize security measures for their IT products, focusing their security directly on users, not just services and applications. To this end, the Zero Trust concept was developed, consisting of a set of decentralized solutions that include security measures such as device control, distribution of access levels, behavior analysis and additional authentication tools. The cybersecurity network can include sophisticated blockchain solutions and a number of other new technologies, which increases the protection of devices and elements of the IT infrastructure of companies: computers, communication channels, databases.
6. Component programs include a set of modular components that help you change the software architecture quickly and safely. Component programs are much more adaptive than "whole" products, making it much easier and faster to launch and scale software, and to develop new products based
on existing code. One of the most promising approaches to component application development is the creation of a single unified platform (SDK) that would be fully compatible with all company products. The modular structure provides it with flexible scalability and extensibility, simplifies maintenance and servicing, and increases the efficiency of metrics and analytics collection, which will provide the business with a much more dynamic development compared to traditional formats.
7. Hyperautomation implies large-scale automation that covers the maximum number of business processes, using which it is possible to significantly improve profitability through accelerated scaling, and reducing the influence of the human factor will make the business more sustainable. Hyper-automation allows to optimize the number of personnel, entrusting automation to a number of work processes previously performed by employees, freeing up company resources, helping to focus them on key areas, to focus on the development of new products. This trend goes well with widespread remote working, companies will be able to make decisions more flexibly and quickly, making their business processes more efficient and responsive.
8. Artificial intelligence development involves a comprehensive approach to artificial intelligence system design. Companies should keep in mind that any machine learning models quickly lose their relevance and cease to be useful for automating business processes, so after collecting data, designing repositories and analytics layers, then companies must harmoniously incorporate the created ML model into current business processes. By integrating them into their technical infrastructure and developing AI-based systems by 2025, corporate profits will triple.
9. Aggregate experience is a business strategy in which companies leverage different types of experiences: employees, customers and users, which helps make all stakeholders more loyal and improve a number of business metrics - primarily revenue and profits (Kyrychenko, et al., 2021). The TX concept is actively used by many IT companies around the world; it is about building continuous multi-channel communication with both customers and employees. In addition, it is not worth sparing money to attract and retain users and motivated specialists in order to get a complete business experience.
10. Autonomous systems are self-managing programs or tools/equipment capable of changing their algorithms in real time without changing their software, bringing the field of information technology closer to the invention of full-scale artificial intelligence. The most important advantage of autonomous systems is their excellent ability to adapt to conditions of novelty or uncertainty. In this respect, they resemble human intelligence in that they can
adjust their algorithms and optimize their work independently, which opens up significant prospects for this direction in many fields, including robotics, drones, manufacturing equipment and many others.
11. Distributed enterprises are a business trend based on moving away from the traditional office format and toward remote or hybrid forms of working in an organization. This trend is extremely popular among IT companies and will soon be adopted by other types of businesses as well. Hybrid work model, in which employees meet in the office only 1-2 days a week to solve common problems, and the rest of the time they work remotely. Profitability of geographically distributed companies will grow 25% faster.
12. Privacy-enhancing computing is a technology that enhances security measures for storing and processing personal data at the software and hardware level. It has become especially popular following stricter legal requirements to protect user data in many countries around the world. By 2025, most large companies will use settlements to improve data privacy. Note that so far they dominate only the most innovative and high-tech companies in the U.S. and Europe (Cherep O., et al., 2022).
4. The concept ofpersonnel management as a factor in the development of humanistic principles in the context of transformational change
The concept of personnel management as a factor in the development of humanistic principles in the context of transformational change (the concept of anthropocracy) should consider such mechanisms as planning, resource allocation, project management, product development, performance evaluation, wage calculation, staffing, training, motivation of personnel. Each of these mechanisms should work on the principles of a humanistic approach to personnel. It should be noted that today there are no companies that operate under the concept of anthropocracy, there are no step-by-step instructions on how to switch to anthropocracy mode. This is not the same as moving an information system to a cloud service or launching a new quad-portal.
It needs to be created carefully, to develop approaches that are both revolutionary, evolutionary, radical in their aims, and pragmatic, which in practice involves much experimentation. This is how managers can weed out unreliable ideas without destroying the entire structure of the organization. At the same time, approaches cannot replace competencies because competencies are knowledge, experience, skills, practice, dedication and hard work. Consider the concept of crowdfunding, which, according to team members, is at odds with important priorities. Each
organization must decide which bureaucratic ills cost the organization the most, decide which rules stifle resilience, initiative, and dedication (Nikitenko, et al., 2020).
Among them: wastefulness, fragmentation, autocracy, monotony, timidity, politicking, and other "diseases" of the bureaucratic machine that affect organizational efficiency. It is also necessary to understand which managerial processes and rules - planning, goal setting, budgeting, staffing, product development, promotion, training, development - are most negatively leading to more and more problems. It is necessary to determine which post-bureaucratic principles (ownership, markets, meritocracy, community, openness, experimentation, and controversy) will most help overcome this mess.
The concept of personnel management as a factor in the development of humanistic principles in a transformational change requires radical changes in human heads, teams and key organizational processes. Changes are needed that will lead to real breakthroughs, and the organization should not resist these changes, because the "changing concept" is progress, big program values of reorganization, new organizational and corporate culture. Reorganization has to be broken down into component parts and distributed among small teams, which is how Amazon software developers work. All organizations suffer from bureaucratic pressure, so they are inert, sluggish, inhumane. Therefore, in large companies, the only way to deal with outdated management methods is to make organizational changes that put people before bureaucracy.
The model being created is a fully humanistic organization with high humanistic values, in which the individual is the top priority of organizational revitalization, and the concept of anthropocracy is developed from the individual to the outcome, based on innovation. Leadership skills and creativity of many people are needed to bring about change in the organization and overcome bureaucracy. The inability to be proactive, the inability of leaders to initiate change and solve problems effectively, is another shortcoming of centralization and bureaucratization, which work against the individual as the subject of all processes, and the need to challenge stifling orthodoxy.
An organization and leaders who cultivate creativity as an essential component in the process of creating humanistic values, and thus the need to move away from templates, offer new answers and see solutions where no one else has seen them, are needed. The importance of knowledge, information and an appropriate culture of innovation as a source of creativity is widely recognized by leaders seeking change in the direction of anthropocracy (Kaufmann Scott, 2021). In an innovative organization, there is
a tangible link between innovation and information workers, whose activities are related to the processing of existing information and the acquisition of new information.
Leadership and management are two sides of the same coin in an organization in which both roles are the working part of a successful manager. In an organization as a living organism there are self-organized teams that work on the basis of AGILE-management, on the basis of self-organization and anthropocracy, with man as the highest value. If the manager feels that the company is not allowed to develop, prohibiting creative solutions to problems, then the organization lacks the concept of anthro-pocracy and simple approaches to it (motivation of employees, development and self-development).
5. The impact of ICT on the innovative development of the regenerative economy and humane human resource management
The impact of ICT on the innovative development of a regenerative economy and humane human resource management is important for today's complex processes, which can be measured in the context of a new paradigm of emergent (integrity) and systemic. It is based on a new attitude to the individual as the highest value in society, a new attitude to information and communication, to the human resource as a set of knowledge, experience, competencies. The Internet has played a key role in enabling the masses not only to be heard, but also to participate in discussions, debates, and governance (Gemel, et al., 2021).
The Internet has spawned a new "collective intelligence" as a new political, economic, social, technological phenomenon that promotes economic prosperity, which requires high-tech human resources. "The knowledge economy" has always been the main source of prosperity, and as production has become more technologically advanced, so has the attitude toward human resources. The more educated people in society, the more productive the economy, as evidenced by the achievements of the "economic miracle" of the East Asia, such as Japan, South Korea, Taiwan, Hong Kong and Singapore (Nikitenko, et al., 2021).
Therefore, education is one of the factors determining the economic growth performance of the "East Asian miracle," because increased education increases the rate of economic growth and the training of a highly educated workforce. The second factor in economic growth we will call technology, which allowed countries to flourish-China, Britain, Germany-which required a highly skilled workforce that would help increase economic productivity to produce more efficient knowledge to work with
technology. Hence, higher education must focus on productive knowledge that can increase the economic efficiency of individual highly productive and competitive countries and enterprises, as well as develop their own human resource capacity (Oleksenko, 2017).
Enterprises must use their human resources effectively to ensure that companies achieve the level of efficiency that they can achieve by managing all institutions to regenerate human and natural capital. To do this, enterprises must implement regenerative management to create stable, healthy and sustainable systems that can lead to an economy that works in coordination with the rest of the world, creating a livable environment.
The new regenerative economic paradigm and human resource management includes the following principles of regenerative management, which is even called "regenerative capitalism":
1. Humane relations - the recognition of life and work as the highest humanistic value, the attitude to the human economy as an integral cultural part, which in turn is the biosphere part.
2. Adaptability, innovation, sensitivity to staff -the use of internal abilities and capabilities created something new in all social areas.
3. Wealth perception as a whole - real wealth is achieved through the harmonization of numerous capital forms - human, innovative, strategic, humanistic capital.
4. Effective and equitable participation of employees in all forms of financial wealth, which should be fairly distributed among all participants in the process in the expanded real wealth view context, including spiritual wealth (Nikitenko, 2020).
5. Reliable circulation flow - a continuous desire to minimize the energetic flow, materials and other resources in all production cycle processes: reuse, re-production, recycling.
6. Prevalence of the "marginal effect" - creative collaboration increases the likelihood of creating wealth value by establishing relationships, exchanges and the ability to recover quickly.
7. Striving for balance - balancing flexibility, long-term ability to learn effectively and become stronger after shocks, due to which, under increasing dynamic conditions, fragile strength foci can be created.
8. Community formation - the functioning and healthy nurturing, stable communities and regions, both real and virtual, in connection with humane, decent relations with the team in order to form locally-oriented economies. This corresponds to the basic natural principles of human psychology and humanistic management, which is the regenerative economic basis and management, developing the philosophical innovative concept (Rezanova, 2017).
It is the regenerative economy and management that is the foundation of the global economy, the principles of which are the "entry code" for large enterprises and the creation of a regenerative future. Humanistic management must become a key factor in changing strategy, appeal to consciousness, and form a corporate culture based on a positive attitude toward personnel. The new regenerative economic paradigm and human resource management includes: an active way to realize one's abilities, talents and programs; new life orientations of a person (knowledge, information, creative and intellectual activity, innovative thinking, scientific and educational activity, search for connections); development of new creative technologies (information, biotechnology, genetic engineering, nanotechnology, artificial intelligence) and their application in the regenerative economy; formation of values (material, scientific, spiritual, production); formation of new ideas and their application in technological innovations; use of imagination, inspiration, knowledge, information, originality as powerful engines of development of creative personality; implementation of a creative approach based on the human talent capitalization, increasing its intellectual capital, which on the ICT basis can become a catalyst for accelerating the service economy and human capital development (Decision of the National Security and Defense Council of Ukraine dated May 14, 2021, 2021).
Human capital can be considered at the individual level (the individual), at the level of the organization and at the level of the state as a formed and developed set of abilities, personal traits and motivations, due to the acquired knowledge and abilities, implemented in work, is the basis of all production in value, used to obtain additional value in the production process as self-generating value:
1) health capital (biophysical) and labor capital;
2) consumer capital (relations in the organization with consumers of its products and services, the business communication system);
3) structural capital (hardware and software, training and retraining system);
4) organizational and entrepreneurial (perseverance, business acumen, innovation, organizational skills, high responsibility, energy and willpower, ability to take risks);
5) cultural and moral capital (a set of intellectual abilities, education, skills, moral qualities, qualification training of the individual;
6) intellectual capital (amount of knowledge, practical skills, creativity, intellectual property - patents, know-how, creative sectors, trademarks, software that ensure competitiveness) in combination with human forms social and cultural capital, which is the economic
knowledge basis required for the formation and creation of creative space and its implementation, required by the economy, which is effectively reproduced.
The convergence of innovative regenerative economic development and human personnel management is based on the creative economic merger, creative business and creative management, which are determined by economic, cultural, technological, social, cultural factors (Pinker, 2019). The creative economy includes: creative assets that can generate economic growth and development; a source of income from industries that promote cultural diversity and human development; technological challenges, intellectual property and creative industries; a set of activities related to the development of the creative and cultural sectors derived from individual creativity, skills, talents that have the potential to create wealth and jobs for human development opportunities (Formation of modern concepts of organization management and administration in conditions of digitalization, 2021).
Such activities are the basis and result of providing opportunities for innovative regenerative economic development and human resource management. Technologies must be more human in nature and generate less waste in the form of resources, responding directly to the basic needs of the people who use them. If there are large economic and social inequalities in society, opportunities for such sustainable development begin to fall short. According to the International Labor Organization, the world needs about a billion more jobs to address global unemployment. Many people who are given opportunities will be able to find jobs and livelihoods through the acquisition of skills, assets, access to knowledge, and career opportunities.
Thus, the new regenerative economic and human resource management paradigm in the systemic dimensions includes institutional system restructuring, changing attitudes towards society and the economy - only with the adoption of new consumption and production models, prosperity and justice, entrepreneurship and humanistic management (Cherep A., et al., 2020).
6. Conclusions
All of this suggests that modern business should be adaptive and client-oriented, that is, it should be primarily client- and person-oriented. In a democratic society, an organization is a tool that people will use to improve their lives and the lives of those for whom they work. The main question of the bureaucracy is how to make people better serve the goals of the organization, the main question of the
bureaucracy is to what extent the organization should identify and encourage the best that people can give it. Leaders must adopt new people-centered principles and apply them to their organizations.
At the same time, the development of cloud platforms will help to create products with a fundamentally new architecture - more flexible and scalable. More and more companies are using Cloud Only when building their IT infrastructure, completely abandoning the traditional approach of deploying local data centers. Cloud platforms are constantly evolving and improving, helping to quickly develop and bring new IT products to market, and the largest technology providers are Amazon Web Services, Microsoft Azure and GCP.
Bureaucracy and overemphasis on formal processes remain a problem in complex organizations, and employees are deprived of basic opportunities to
References:
express themselves. Unsatisfied employees with no prospects for development translate into inefficiency and low productivity of the company, so systematic problem solving can save it from gradual decline. The Human Democracy model of organization is a humanistic view focused on people, relationships, empowerment, competency development, the "man above all"; look at anthropocracy management 3.0 as biblical leaders.
At its core is a redefinition of the economy as a social and natural subsystem, and therefore as a tool for achieving a socially just and environmentally sustainable future - not the end goal it is now. Only the formation of a new regenerative economic and human resource management paradigm will facilitate new systemic changes that will lead to sustainability, a paradigm of rethinking economics, science, education, culture, and management.
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Received on: 5th ofJuly August, 2022 Accepted on: 22th of August, 2022 Published on: 30th of September, 2022
