Development of a fuzzy optimization model for the formation of a portfolio of well-being program activities to increase employee productivity
Abstract
This study was conducted within the framework of the urgent task of studying the processes of developing the human capital of an organization and increasing employee productivity. At the same time, the development process is viewed through the prism of creating and implementing various elements of the well-being program into the main corporate business processes of the organization. The purpose of this work is to develop a fuzzy method for forming an optimal portfolio of well-being program activities which will allow you to get as close as possible to the target values of key performance indicators (KPIs) of employees on a given planning horizon. To achieve this goal, a hypothesis is put forward about the possibility of building a tool that allows, based on the functional dependencies of influence channels, to form an optimal portfolio of well-being program activities that increases the efficiency of the organization. The method developed consists of a model representing a fuzzy programming problem and a method for finding its solution. A distinctive feature of the model is the consideration of two levels of uncertainty in the formation of an optimal portfolio of activities related to the reliability of estimates of numerical coefficients of functional dependencies of channels of influence and a set of parameters of constraints determined by experts. An integral indicator is used as the target function of the model, which characterizes the degree to which the target values of key employee performance indicators are achieved, taking into account the importance of each of them for the organization. The optimization variables in the model are binary variables that determine the inclusion of a certain event in the well-being program of an organization at a specific time within a given planning period. The limitations in the model are: the total amount of financial resources allocated for the implementation of the well-being program; the amount of investment in a specific area of the well-being program; an increase in the integral indicator of competence of each employee. From a practical point of view, the proposed method will make it possible to form a well-founded portfolio of well-being program activities, the implementation of which has the maximum possible positive impact on employee productivity.
Downloads
References
Mazelis L., Lavrenyuk K., Grenkin G., Krasko A. (2023) Conceptual model for the development of employee competencies through the well-being implementation. International Journal of Sustainable Development & Planning, vol. 18, no. 11, pp. 3557–3566. https://doi.org/10.18280/ijsdp.181120
Zeyi L., Jiayin H. (2024) Key factors for sustainability – corporate culture and employee well-being. Advances in Economics, Management and Political Sciences, vol. 78, pp. 263–267. https://doi.org/10.54254/2754-1169/78/20241734
Gonsiorowska M., Zieba M. (2023) Employee well-being and its potential link with human knowledge risks. 24th European Conference on Knowledge Management, pp. 430–436. https://doi.org/10.34190/eckm.24.1.1578
Salman M., Saleem I., Ganie S.A. (2023) Human resource management practices as antecedents of employee competencies: Empirical evidence from the banking industry. Management and Labour Studies, vol. 3, no. 48, pp. 381–398. https://doi.org/10.1177/0258042X221138362
Rudyk O., Maksymova J., Zaletska I. (2023) The importance of developing the professional competences of the staff of ser-vice sector enterprises. Market Economy Modern Management Theory and Practice, vol. 21, no. 3, pp. 461–475. https://doi.org/10.18524/2413-9998.2022.3(52).275826
Loyalka P., Huang X., Zhang L., et al. (2015) The impact of vocational schooling on human capital development in developing countries: Evidence from China. The World Bank Economic Review, vol. 30, no. 1, pp. 143–170. https://doi.org/10.1093/wber/lhv050
Mathibe M.S., Chinyamurindi W.T. (2021) Determinants of employee mental health in the South African public service: The role of organizational citizenship behaviors and workplace social support. Advances in Mental Health, vol. 19, no. 3, pp. 306–316. https://doi.org/10.1080/18387357.2021.1938153
Nursel A.M. (2020) The relationship between employee well-being, burnout and perceived organizational support in healthcare professionals. Journal of International Health Sciences and Management, vol. 6, no. 12, pp. 34–39. https://doi.org/10.48121/jihsam.788565
Konieczny G., Kolisnichenko P., Górska M., Górski T. (2023) The role of well-being in sustainable corporate development of companies. Economics, Finance and Management Review, vol. 15, no. 3, pp. 59–67. https://doi.org/10.36690/2674-5208-2023-3-59-67
Bes I., Shoman Y., Al-Gobari M., et al. (2023) Organizational interventions and occupational burnout: a meta-analysis with focus on exhaustion. International Archives of Occupational and Environmental Health, vol. 9, no. 96, pp. 1211–1223. https://doi.org/10.1007/s00420-023-02009-z
Genkin E.V., Ozerov S.L., Satina A.V. (2022) Implementation of the WELL-BEING program to maintain the emotional and psychological state of the company's employees. Normirovaniye i Oplata Truda v Promyshlennosti (Labor Norming and Remuneration in Industrial Sector), no. 2 (in Russian). https://doi.org/10.33920/pro-3-2202-03
Konovalova V.G. (2018) Experience, development trends and problems of implementing corporate employee health and well-being programs. Management of the Personnel and Intellectual Resources in Russia, vol. 7, no. 5, pp. 19–29 (in Russian). https://doi.org/10.12737/article_5bd1c6797f9068.21933673
Rong C. (2024) The impact of employees’ health and well-being on job performance. Journal of Education, Humanities and Social Sciences, vol. 29, pp. 372–378. https://doi.org/10.54097/9ft7db35
Naczenski L.M., de Vries J.D., van Hooff M.L.M., Kompier M.A.J. (2017) Systematic review of the association between physical activity and burnout. Journal of Occupational Health, vol. 59, no. 6, pp. 477–494. https://doi.org/10.1539/joh.17-0050-RA
Shih S.-P., Jiang J.J., Klein G., Wang E. (2013) Job burnout of the information technology worker: Work exhaustion, depersonalization, and personal accomplishment. Information & Management, vol. 50, no. 7, pp. 582–589. https://doi.org/10.1016/j.im.2013.08.003
Diamantidis A.D., Chatzoglou P. (2019) Factors affecting employee performance: An empirical approach. International Journal of Productivity and Performance Management, vol. 68, no. 1, pp. 171–193. https://doi.org/10.1108/IJPPM-01-2018-0012
Otoo F.N.K., Mishra M. (2018) Measuring the impact of human resource development (HRD) practices on employee performance in small and medium scale enterprises. European Journal of Training and Development, vol. 42, nos. 7/8, pp. 517–534. https://doi.org/10.1108/EJTD-07-2017-0061
Kurniawan A., Sanosra A., Qomariah N. (2023) Efforts to increase motivation and performance based on employee competency and job characteristics. Journal of Economics, Finance and Management Studies, vol. 6, no. 7, pp. 3153–3162. https://doi.org/10.47191/jefms/v6-i7-17
Ateke B.W., Nwulu C.S. (2018) Employee competency development and organizational resilience. International Journal of Social Sciences and Management Research, vol. 4, no. 3, pp. 31–44.
Dharmanegara I.B.A., Sitiari N.W., Wirayudha I.D.G.N. (2016) Job competency and work environment: the effect on job satisfaction and job performance among SMEs worker. IOSR Journal of Business and Management, vol. 18, no. 1, pp. 19–26. http://doi.org/10.9790/487X-18121926
Sitopu Y.B., Sitinjak K.A., Marpaung F.K. (2021) The influence of motivation, work discipline, and compensation on employee performance. Golden Ratio of Human Resource Management, vol. 2, no. 1, pp. 72–83. https://doi.org/10.52970/grhrm.v1i2.79
Kim J., Jung H.-S. (2022) The effect of employee competency and organizational culture on employees’ perceived stress for better workplace. International Journal of Environmental Research and Public Health, vol. 19, no. 8. https://doi.org/10.3390/ijerph19084428
Matani M., Bidmeshki G.A. (2020) The role of burnout on reducing employees' performance. Journal of Management and Accounting Studies, vol. 6, no. 2, pp. 39–46. https://doi.org/10.24200/jmas.vol6iss02pp39-46
Trees Bolt E.E., Homer S.T. (2023) Employee corporate social responsibility and well-being: The role of work, family and culture spillover. Employee Relations: The International Journal, vol. 46, no. 7. https://doi.org/10.1108/ER-02-2023-0097
Kristiana Y., Sijabat R., Sudibjo N., Bernarto I. (2024) Hotel employee well-being: The role of job crafting and work engagement. International Journal of Religion, vol. 5, no. 7, pp. 200–211. https://doi.org/10.61707/az74f509
Saleh R. (2023) The effect of motivation factors on employee performance: Performance appraisal using data mining. Journal of Business Theory and Practice, vol. 11, no. 1, pp. 43–58. https://doi.org/10.22158/jbtp.v11n1p43
Ozcelik H., Langton N., Aldrich H. (2008) Doing well and doing good: The relationship between leadership practices that facilitate a positive emotional climate and organizational performance. Journal of Managerial Psychology, vol. 23, no. 2, pp. 186–203. https://doi.org/10.1108/02683940810850817
Fastje F., Mesmer-Magnus J., Guidice R., Andrews M.C. (2023) Employee burnout: The dark side of performance-driven work climates. Journal of Organizational Effectiveness: People and Performance, vol. 10, no. 1, pp. 1–21. https://doi.org/10.1108/JOEPP-10-2021-0274
Rony Z., Pardosi H.D. (2021) Burnout digital monitoring on employee engagement at the company. International Journal of Research in Business and Social Science, vol. 10, no. 7, pp. 156–162. https://doi.org/10.20525/ijrbs.v10i7.1412
Williams H.P. (2013) Model building in mathematical programming, 5th Edition. Willey.
Ammar E., Khalifa H.A. (2003) Fuzzy portfolio optimization a quadratic programming approach. Chaos, Solitons & Fractals, vol. 18, no. 5, pp. 1045–1054. https://doi.org/10.1016/S0960-0779(03)00071-7
Akopov A.S. (2014) Parallel genetic algorithm with fading selection. International Journal of Computer Applications in Technology, vol. 49, nos. 3/4, pp. 325–331. https://doi.org/10.1504/IJCAT.2014.062368
Mazelis L., Solodukhin K., Tarantaev A. (2018) Fuzzy optimization models for project portfolio rolling planning taking into account risk and stakeholder interests. The Journal of Social Sciences Research, no. 3, pp. 201–210. https://doi.org/10.32861/jssr.spi3.201.210
Mazelis L.S., Lavreniuk K.I., Grenkin G.V. 2023Analysis of the Relation Between Expectation of Employees from Corporate Environment and their Burnout. Journal of Applied Economic Research, vol. 22, no. 4, pp. 1034–1055 (in Russian). https://doi.org/10.15826/vestnik.2023.22.4.040
Mazelis L.S., Grenkin G.V., Lavreniuk K.I., Krasko A.A. (2024) Fuzzy method for assessing the impact of employee competencies and burnout on their achievement of key performance indicators. Gibridnye i sinergeticheskie intellektualnye sistemy (Hybrid and synergistic intelligent systems). Collection of articles from the materials of the VII All-Russian Pospel Conference. Kaliningrad, St. Petersburg, pp. 411–422 (in Russian).
Mazelis L.S., Lavreniuk K.I., Krasko A.A. (2023) Modeling the development of employee competence by investing in well-being program activities. Market Economy Problems, no. 3, pp. 53–67 (in Russian). http://doi.org/10.33051/2500-2325-2023-3-53-67
Anshin V.M., Demkin I.V., Nikonov I.M., Tsarkov I.N. (2008) Models of project portfolio management under uncertainty. Moscow: Moscow State Aviation Technological University (in Russian).
Wang J., Hwang W.-L. (2007) A fuzzy set approach for R&D portfolio selection using a real options valuation model. Omega, vol. 35, no. 3, pp. 247–257. https://doi.org/10.1016/j.omega.2005.06.002
