UDC 331:338.43:658.5; JEL J5, J8, D24, Q12
Mahiiovych, R. I. (2026). The impact of social and labor relations on the formation of cost management strategies in agro-industrial enterprises. Rehional'na ekonomika - Regional Economy, 120 (2), 67-74. DOI: https://doi.org/10.36818/1562-0905-2026-2-6.
Sources: 13

Authors



Mahiiovych Ruslana Ivanivna

Ph.D. of Economics, Associate Professor

Associate Professor of the Department of economics of the Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies of Lviv

Contacts: magijovych@gmail.com

Webpages:

Resume

Purpose. The aim of the study is to determine the impact of social and labour relations on the formulation of cost management strategies for enterprises in the agro-industrial complex and to substantiate approaches to improving the efficiency of labour resource utilisation within the strategic cost management system.
Methodology. The study utilises a range of general scientific and specialised methods, including analysis and synthesis, the systems approach, comparative analysis, and the synthesis of academic sources and practical experience regarding the operations of agribusiness enterprises. To substantiate the proposed approaches to cost management, methods of strategic analysis of social and labour relations and assessment of the effectiveness of motivational mechanisms were applied.
Findings. It has been established that social and labour relations are an important factor in the formation of an effective cost management strategy for agribusiness enterprises. The main factors influencing personnel costs have been identified, in particular the level of remuneration, employee productivity, vocational training and social security. The feasibility of integrating the system for managing social and labour relations into the process of strategic cost management has been substantiated. Directions for improving the effectiveness of cost management through the improvement of labour relations, the development of corporate culture and the enhancement of staff qualifications have been proposed.
Originality. The scientific novelty of the study lies in the development of an approach to integrating social and labour relations into the cost management system of agribusiness enterprises through the introduction of a hybrid staff motivation system, which combines key performance indicators (KPIs), piecework pay and cost indicators. The study proposes the use of ‘cost-reduction’ KPIs, digital monitoring of staff performance and the seasonal adaptation of incentive mechanisms to ensure increased labour productivity and a reduction in production costs.
Practical value. The practical significance of the research findings lies in their potential use by managers of agribusiness enterprises to improve cost management systems, enhance the efficiency of labour resource utilisation, develop modern incentive mechanisms and strengthen the competitiveness of enterprises. The proposed approaches can be utilised when developing sustainable development strategies for agribusiness enterprises in the context of the digital transformation of the economy.

Keywords:

social and labour relations, cost management, agribusiness enterprises, enterprise strategy, labour resources, key performance indicators, labour motivation