Digitizing Human Capital Management at Industrial Enterprises: A Case of Business Process Modeling in the Fuel and Energy Sector

The study scrutinizes the need for reconsidering traditional approaches to human resources management amid the unfolding digital transformation, which is a response to changes in the socio-economic environment. The research rests on the soft systems methodology used to deeply comprehend and model the complex relationships between the existing production processes, technologies and human resources of an enterprise. A conceptual model of human capital management using the case of the fuel and energy sector (FES) is developed allowing for the interaction of formal and informal aspects. The model describes the perfect construct for managing human capital development through a set of intertwined business processes—from establishing staff members’ needs to their displacement. Business process modeling helps not only visualize and optimize the interface between employees and processes, but also predict their progress. Due to the special aspects of human resources policy in the FES, the model has certain limitations and rigidity boundaries. The paper also clarifies a number of regional factors that may be included in the study. The model emphasizes the importance of a dynamic approach in business process modeling to ensure their flexibility and adaptability. The study is intended to contribute to the formation, discussion and improvement of strategies for effective human capital management. The research results can be utilized to complement theoretical models and improve human capital management practices, which is relevant for various industries.