Chapter 4. Managing staff development in higher education institutions through the lens of the "Economics of Happiness"

103 CHAPTER 4 CHAPTER 4 Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" Abstract The chapter examines the problem of managing staff development in higher education institutions within the framework of the "Economics of Happiness" theory. It analyzes approaches to understanding the phenomenon of the "Economics of Happiness" in socio-humanitarian discourse and outlines its connection with human resource management theories. It is emphasized that in higher education, where people represent the key resource, the task is not only to foster professional competence but also to create conditions for sustaining emotional well-being and life satisfaction. The results of empirical studies on the satisfaction levels of higher education staff and the factors influencing them are presented. Staff development is considered both as a challenge and as a resource for enhancing university effectiveness. Innovative management practices are proposed, aimed at cultivating a culture of trust, engagement, and recognition, as well as mechanisms to reduce professional burnout and strengthen organizational resilience. The chapter concludes that integrating the principles of the "Economics of Happiness" into staff development management contributes not only to improving the quality of the educational process but also to ensuring the sustainable development of higher education institutions as a whole. KEYWORDS Economics of happiness, human resource management, staff development, higher education institution, emotional well-being, professional burnout, organizational resilience. The economics of happiness is a new direction in economic theory that has emerged in recent decades in connection with criticism of GDP and related indicators. Within this direction, alternative indicators have been and continue to be created that allow determining development and ensuring balanced economic growth in a given country. Attempts to identify the interdependence of the socio-political development of countries and the happiness of the population were made by Y. Yarmolenko, E. Vorobyov, and T. Demchenko, DOI: 10.15587/978-617-8360-20-7.CH4 Nataliia Sas, Lada Samarska, Anna Fastivets, Svitlana Lysenko, Lidiia Cherednyk, Tetiana Bielska © The Author(s) of chapter, 2025. This is an Open Access chapter distributed under the terms of the CC BY license 104 CHAPTER 4 Educational policy and reforms: the impact of globalization who formulated the economics of happiness as a new economic paradigm. The components of the happiness index, their scaling, comparison of different countries in terms of happiness indicators, and the analysis of Ukraine's status according to the happiness index were carried out by O. Cheromukhina, E. Diner, M. Seligman, and A. Ivanova; the analysis of the subjective component of the happiness index, the classification and description of the archetypes of happiness were carried out by N. Sas, L. Samarska, N. Yeromina, N. Kargina, and S. Mitsuga. The level of happiness and factors influencing its dynamics in higher education institutions in Ukraine were analysed by G. Novosad, V. Slotina-Chorna, M. Shulga, O. Voloshok, L. Nozdrina, N. Plakhotnyuk, K. Levkivska, O. Makarevich, A. Kravchenko and others. The possibility of managing happiness was explored by J. Olds and P. Milner, R. Puri, U. Lushch, and Y. Smirnov. Agile management and the theory of happiness management were developed by Y. Appelo. Individual components of happiness management in the context of innovative activity were revealed by S. Ilyashenko, Yu. Shipulina, N. Ilyashenko, N. Sas, G. Komarnytska, O. Grynenko, D. Kovtunenko. Despite the attention paid to the above issues, the problem of managing the development of higher education institution staff in the context of the theory of the "Economics of Happiness" has not been systematically addressed, which has made scientific research in this area particularly relevant. 4.1 The level of happiness as an indicator for determining, assessing and comparing the socio-economic development of countries A number of international events indicate that the level of happiness is increasingly used to determine, assess and compare the socio-economic development of countries, and also serves as a goal for the activities of national governments. The term "gross national happiness" (GNH) was coined in 1972 by S. Mansholt, one of the founding fathers of the European Union and the fourth president of the European Commission. It is no coincidence that the anthem of the European Union is the instrumental part of the song "Ode to Joy": music by L. van Beethoven (Symphony No. 9, first performed in Vienna in 1824), lyrics by F. Schiller (written in 1785). The second article of the US Declaration of Independence (adopted by the Continental Congress on 4 July 1776) states that all people are created equal and endowed by their Creator with certain inalienable rights, including life, liberty and the pursuit of happiness. To secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive of these ends, it is the right of the people to alter or abolish it, and to institute new government, laying its foundation on such principles and organising its powers in such form, as to them shall seem most likely to effect their safety and happiness [1]. Thus, the pursuit of happiness was declared to be the right of every 105 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 person; the task of the government is not to hinder the pursuit of happiness and, moreover, power must be organised in forms that best ensure the pursuit of happiness. However, the declared provisions regarding happiness did not become a targeted programme or system of action, but turned into the so-called "American dream". In 2005, the International Institute for Management Development first proposed the Gross National Happiness and Well-being Index (GNW/GNH). The GNW/GNH Index was proposed to help define and evaluate socio-economic development. On 18 July 2008, the adopted Constitution of Bhutan recognised the Gross National Happiness Index as the goal of the Bhutanese government. This term corresponds to the Buddhist idea that the ultimate goal of life is inner happiness. The components of gross national happiness are: economic self-sufficiency, pristine environment, preservation and promotion of Bhutanese culture, and good governance in the form of democracy. This is the first example of a government setting a goal of increasing the gross national happiness index and defining its components. The achievement of the goal is ensured by a targeted strategy to achieve each of the indicators. In the context of the issue under consideration, we believe it was important to examine the components of the measurement system (indices and indicators) for quantitative and qualitative assessment of the level of happiness. Despite the lack of clarity and consistency in the systems for measuring happiness available to the author, their analysis revealed that the UN SDG indicator system highlights indicators of institutional aspects of sustainable development (policy programming and planning, scientific research, international legal instruments, information provision, and strengthening the role of key population groups). The latter makes it possible to identify the direction of progressive development – the orientation of countries' policies towards creating economies based on the "prosperity for all" model [2]. The European indicators of sustainable cities (ECI) include "citizen satisfaction with the city", and the use of the human well-being index is gaining momentum. The proposed calculation of sustainable development does not take into account the happiness index, but we consider these examples as elements of movement in the desired direction (assessment of the level of happiness). In 2011, the UN General Assembly adopted a resolution entitled "Happiness: a value-based approach to development" [3]. Participants in the round table on "Government & Happiness", organised at the World Economic Forum in Davos (2019), focused on the need for the government to care about the happiness of its citizens [4]. The World Happiness Report is compiled annually as part of a UN initiative [5]. The happiness index is calculated based on objective indicators. The jury members take into account indicators such as GDP per capita, social support, life expectancy, people's sincerity, perception of corruption, etc., without considering the attitudes of specific individuals. The rankings are published annually in February and reflect the situation for the previous year. However, such calculations are proposed from the point of view of objectivists, top managers, management geniuses, a small number of whom know how to measure the happiness of everyone (the whole world, all peoples). This 106 CHAPTER 4 Educational policy and reforms: the impact of globalization corresponds to the view that discoveries are made by individuals – geniuses, while the rest are those who follow the geniuses. This view, while having a basis, is not ideal. And geniuses, as history shows, have been both positive and negative. As a Ukrainian, the author was interested in the dynamics of Ukraine's happiness index for 2006–2019 (Fig. 4.1).  Fig. 4.1 Dynamics of Ukraine's happiness index for 2006–2019 The dynamics of happiness indices are indicative for every Ukrainian. In particular, according to the results of the World Happiness Report, which has been presented annually (since 2012) by the UN Division for Sustainable Development, the bar chart (Fig. 4.1) shows a decline in Ukraine's happiness index in 2014–2016. In 2020, Ukraine ranked 123rd out of 153 countries, in 2021 it was 110th, in 2022 it was 98th, and in 2023 Ukraine ranked 92nd. In 2024, Ukraine ranked 105th in the World Happiness Report. It then fell 13 places compared to 2023. In 2025, Ukraine fell six places compared to 2024, ranking 111th. V. Slotina-Chorna, I. Danyluk, O. Kupreeva, M. Shulga, and other researchers note a lack of happiness among the Ukrainian population. This is due to military actions in eastern Ukraine (since 2014), the occupation of Crimea, and the full-scale invasion (since 2022), which have affected every family (forced migrants, those who have died, been maimed, gone missing, been taken prisoner, forcibly deported, etc.). In addition, the following reasons for Ukrainians' low sense of happiness are indicated: two revolutions, the occupation of Crimea, financial crises, and a series of reforms, which are the cause of constant turmoil in society and sources of anticipation of bad news and uncertainty [6]. The degradation of the status of social groups, the collapse of the normative and value system, and the loss of social stability are reflected in the public consciousness in generalised negative associations related to the corresponding image of Ukrainian society, in the depressed state of social well-being of the population, high levels of anxiety, and the prevalence of various phobias. The public consciousness in Ukraine is currently dominated by uncertainty, confusion, disappointment, insecurity, nihilism, and indifference. However, processes of moral degradation, growing aggression, cruelty, and violence in society are particularly alarming. Against this backdrop, the level of mutual trust and solidarity in society is weakening [7]. In the author's opinion, these events and their consequences are stress-inducing factors. It is logical to assume that the stressful situation is intensifying for most Ukrainians. Thus, it is possible to hypothetically establish a direct link between the feeling of stress and the level of happiness: the higher the stress, the less happiness people feel. 107 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 The author's assumption is confirmed by the "Easterlin Paradox". In particular, Yu. Yarmolenko and E. Vorobyov note that on a global scale, there is evidence of the "Easterlin Paradox", which suggests that after a certain level of economic growth is reached, the relationship between income and happiness disappears. Thus, in the short term, the degree of economic development and the level of happiness correlate, but in the long term (10–34 years), this pattern does not work. Contrary to expectations, income growth over a decade does not make people happy [8]. E. Vorobyov notes the connection between the level of happiness not with absolute income, but with relative income, i.e. in comparison with other people [9]. This emphasises the importance of the subjective feeling of happiness. The results of a global study of happiness and political preferences showed that ordinary people want their governments to base their policies on the happiness of the population. Among the key findings of the report, the authors note: – 57.6% of respondents worldwide consider happiness and health to be the most important factors in their lives, even more important than material factors such as income or career success; – 85.4% of respondents worldwide expect their governments to play an active role in increasing the happiness of their citizens; – although the United States and Western European countries are among the happiest in the world, they also have the most pessimistic views on the happiness of future generations; – about 22% of the population hold deeply populist beliefs. According to V. Pinchuk, happiness offers a radical political narrative that focuses on the real and concrete issues of people's lives. It is a compelling new narrative and a much-needed way to bring people together in the struggle for a better future [10]. Most scientists agree that the economic component is the basis for ensuring human life. At the same time, economists T. Brittain, A. Clark, and A. Oswald prove in their research that unemployment reduces the level of happiness in the wider world, which explains why a significant percentage of people (80%) believe that the government plays a key role in achieving their happiness [11]. The importance of the subjective factor in assessing and feeling happiness is confirmed by the results of a happiness index study conducted by Gallup International, an association of independent research agencies. In Ukraine, the survey was conducted in early December 2020 by the Kyiv International Institute of Sociology [12]. In this study, the happiness index is calculated as the percentage of those who consider themselves happy minus the percentage of those who consider themselves unhappy, i.e. it is calculated solely on the basis of the subjective feelings of the respondents. The responses of Ukrainians surveyed showed a sharp decline in subjective feelings of happiness: 33% in 2019 and 14% in 2020. It is clear that the 2020 pandemic was another stress factor that had a significant impact. The limitation of the method used is that its results can only be considered relevant to the "here and now" situation. This is because the internal "local sense of happiness" can be influenced by situational, unconscious factors. In addition, being as subjective as possible, this system of measuring happiness records the state but does not set the direction of development. 108 CHAPTER 4 Educational policy and reforms: the impact of globalization We propose the following components of the subjective component of happiness, the consideration of which can overcome the limitations of the previous ones – to achieve constructiveness (it will be possible to compare dynamics and outline the direction of movement). In our opinion, the subjective component of the happiness index can be broken down as follows: stress, individuals' life values, life satisfaction [13]. According to G. Selie, stress is a non-specific response of the body to any demands placed on it [14]. During stress, along with elements of adaptation to strong stimuli, there are elements of tension and even damage. It was the universality of the "triad of changes" accompanying stress: a decrease in the thymus, an increase in the adrenal cortex, and the appearance of haemorrhages and even ulcers in the gastrointestinal tract mucosa that allowed G. Selye to hypothesise about a general adaptation syndrome (GAS), which later became known as "stress". Stress is accompanied by: a reduction in the thymus, an increase in the adrenal cortex, and the appearance of haemorrhages and even ulcers in the gastrointestinal tract mucosa. In other words, an increase in the incidence of disease among the population of any country under the influence of these functional changes in the human body may indicate social, economic and political tension in society, and therefore a decrease in the subjective feeling of happiness. Life and freedom are recognised as the most important and precious values. Therefore, a comparison of indicators of the duration and state of human rights and freedoms will indicate the level of happiness in a given country. It is quite logical to predict the possibility of controlling the level of happiness. Such possibilities are opening up on the basis of achievements in the field of neurobiology. A well-known experiment conducted by American behavioural psychologists J. Olds and P. Milner in 1954 was based on the study of the feeling of pleasure and the neural correlates associated with its attainment. As a result of the experiment, an important part of the brain called the "pleasure centre" was discovered [15]. The experiment involved rats sitting in a special box with electrodes implanted in the limbic system. Even when the animal was given the opportunity to independently regulate the sensation of pleasure by pressing a lever, the effect remained. In an effort to experience pleasure again and again, the rat pressed the lever, ignoring the actions necessary for survival (for example, denying itself food) until it died of exhaustion. Although experiments involving the implantation of electrodes in the human brain in the "pleasure centre" area were deemed unethical, the study of "pleasure centres" led to the discovery of a substance secreted in the brain during the process of obtaining pleasure – dopamine (and the possibility of increasing its secretion, for example, through physical exercise). Research by Japanese scientists opens up the possibility of objectively measuring the feeling of happiness using magnetic resonance imaging [16]. In particular, statistical analysis revealed a correlation between the level of happiness and the amount of grey matter in one area of the right hemisphere – the inner part of the parietal cortex (precuneus). It has been established that the precuneus is connected to other brain structures and is involved in integrating information about current internal sensations, memories of the past, and plans for the future. This new discovery will likely lead to the development of methods for enhancing feelings of happiness in people 109 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 through meditation. According to some studies, meditation increases the amount of grey matter in the precuneus. It is worth noting that the principle of sustainable, balanced development is defined as a key principle of all EU policies [17]. According to this principle, any EU policy should be developed in such a way that it takes into account economic, social and environmental aspects, and the achievement of goals in one policy area should not hinder progress in another. From the point of view of the concept of happiness, achieving sustainable development is nothing more than the work of state bodies focused on end consumers, state policies in their economic, social and environmental aspects. Recognising happiness as a determinant of sustainable development also has ethical implications, representing a shift in the values of many people. Like any social ideal, the recognition of happiness as a determinant of sustainable development is a guide for the creation of a society whose policies (economic, social, environmental) result in the happiness of the population of each country and the planet through the satisfaction of human needs (economic, social, environmental). Let us consider what a need is from the point of view of the typology of happiness. In our opinion, the generalised classification of archetypes of happiness is as follows: hedonism, eudaimonia, rat race, nihilism, subjective well-being [18]. Hedonism (from the Greek for pleasure) is the enjoyment of simple pleasures: fallen leaves in the park, moments of closeness with friends, or hugging a dog [19]. The ancient Greek philosopher Epicurus is usually credited with creating the theoretical foundations of the hedonistic approach to life and happiness. It was a form of hedonism based not so much on living in complete indulgence of one's whims, but rather on moderate pleasures, self-control, and respect for others. Human beings have a fundamental need for satisfaction and enjoyment in life; the absence of such enjoyment narrows their spiritual horizons. Eudaimonia equates happiness with the development of personal abilities: a "happy" life consists in the realisation of people's potential (moral, intellectual, social, etc.) and their development. The belief in happiness-eudaimonia underlies Aristotle's ethical concept, according to which the state of happiness presupposes the individual's desire to respond to their own calling ("Daimon") or "true self" and occurs through the development of all the possibilities inherent not only in the typical characteristics of the personality, but also uniquely present in any human individual [20]. The rat race refers to the pursuit of financial well-being, career building, achieving success, winning in competitive struggle, etc. (similar to the image of a laboratory rat running through a maze and receiving pieces of cheese as a reward). Those for whom this lifestyle is ideal and acceptable feel completely happy. Nihilism (from the Latin nihil, nothing) is the rejection of established social norms, values, authorities, and ideals. P. Kropotkin is credited with defining nihilism as a symbol of the struggle against all forms of tyranny, hypocrisy, and artificiality, as well as for personal freedom. In different years and in different countries, atheists, youth subcultures of punks and hippies, etc. were considered nihilists. J. Baudrillard and others characterised postmodernism as a nihilistic era or way of thinking [21]. The values of postmodernism are considered to be freedom, diversity, tolerance, and a view of society where "everyone is an author and an actor". In our opinion, nihilists can be 110 CHAPTER 4 Educational policy and reforms: the impact of globalization defined as individuals who are capable of living in a state of alternativeness, of being in a situation "between" (reassessment of values, reorientation of goals, etc.). In the context of the problem at hand, this applies not only to situations of renewal and self-expression, but also to the renewal of the surrounding society. The basis for understanding the meaning of subjective well-being is contained in E. Diener's psychological theory of subjective well-being [22, 23] and M. Seligman's concept of authentic happiness [24]. Personal, specific cognitive and emotional-evaluative interpretation of a situation determines the direction of such a person's activity in the form of behavioural strategies. Such a person is said to be "on their own wavelength". Such a person's assessment of external circumstances may not contradict generally accepted norms, but it may not depend on them either. To a certain extent, subjective well-being is the essence of Eastern practices (according to Japanese budo expert M. Saotome "to know yourself means to know the mission that Heaven has assigned to you") [25]. The above typologies of happiness and their carriers do not exclude the need to satisfy Maslow's needs, but they significantly expand the range of attention of state bodies and state policy regarding their variability. The implementation of electrotherapy or meditation classes is not enough from the point of view of the typology of happiness. For example, for hedonists, comfortable and beautiful housing, clothing, food, etc. are important – the start of the development of relevant industries and their stimulation (not only safe, but also beautiful and aesthetic). For eudemonists, it is important to have conditions for the development of various abilities – moral, intellectual, social, etc. The task for state bodies is to create appropriate opportunities, conditions and access to them. Participants in the "rat race" are able to maintain a frantic pace in achieving their goals, but obviously require a high level of service (in catering, healthcare, education, technical services, etc.) (not only safe, but also fast). We assume that developed services will attract the attention of representatives of other behavioural typologies of happiness. Everyone is both a user and a producer, and the state's task is to support and stimulate the constructive and limit the destructive (in terms of compliance with laws, environmental expediency, and sustainable development). We assume that in any country, under any social system, there are representatives of different archetypes of happiness; we assume that the typology of archetypes will develop over time. Thus, the level of happiness becomes a factor for comparing the dynamics of countries' development and a goal for the activities of national governments. This view can be extrapolated to the activities of management teams of enterprises, organisations and institutions. 4.2 Analysis of the results of empirical studies of the level of happiness in higher education institutions in Ukraine In connection with the topic of the study, it seems necessary to analyse the issues and results of empirical research. Since the subjects of activity in educational institutions are teachers, students, and administrators, we are interested in their ideas about happiness. 111 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 Determining indicators of human happiness is a topical issue among scientists and psychologists. Each person has their own needs, so the interpretation of happiness is different for everyone. The processes (stress factors) mentioned in the previous paragraph objectively influence the feelings of happiness/unhappiness of members of teaching and student communities and management teams of higher education institutions. In addition to the aforementioned nationwide stress factors, H. Novosad highlights the fear "of everyone towards everyone else – students towards teachers, teachers towards principals, principals towards the ministry", which was characteristic of the Soviet educational paradigm. In her opinion, fear stifles any creative potential and any opportunity for dialogue. And, of course, it does not add to happiness [26]. According to the author, this can be extrapolated to higher education institutions. O. Voloshok and L. Nozdrina conducted an online survey on the topic "Happiness at University", during which students and teachers from various higher education institutions in Lviv, Kharkiv, Cherkasy, and Kyiv were surveyed. Based on the results of their research, O. Voloshok and L. Nozdrina claim that: students and teachers of all universities are generally happy (median – 7 points out of 10) 79.3% of respondents are satisfied with their life in higher education institutions and only 20.7% of respondents are dissatisfied; 76.4% believe that the factors of happiness are material, spiritual and social goods together, 14.6% – only spiritual goods, 3.4% – material goods, 2.2% – social goods, and 3.4% cannot answer this question. 69.2% responded that they are often happy, 23.7% – sometimes, 3.7% responded that they are not often happy, and 3.4% could not answer [27]. According to the data presented, the happiness of the majority of respondents from various higher education institutions in Ukraine (79.3% of respondents) does not depend on the "turbulent" factors of Ukrainian reality. Teachers at higher education institutions (among the adult population) and students (among young people) are considered successful people in Ukraine, so it is considered "bad form" to complain. The state tries to ensure that higher education institutions operate free from political battles; teachers, students, and postgraduates of higher education institutions, however difficult it may be, are not drafted into the Ukrainian army – this, explains the discrepancy between the conclusions regarding the happiness of Ukrainian society obtained by V. Slotina-Chorna and M. Shulga and the association of independent research agencies Gallup International with the feeling of happiness in higher education institutions obtained by O. Voloshok and L. Nozdrina. Therefore, in our opinion, the data on the feeling of happiness should be considered in comparison with those who are worse off. When asked "What is needed for complete happiness?", 133 (41.3%) respondents said they lacked money; 123 (38.2%) said they needed self-fulfilment; 105 (32.6%) said they needed free time; 102 (31.7%) said they needed confidence in the future, and only 65 (20.2%) said they had everything they needed for complete happiness. The data obtained by I. Danylyuk and O. Kupreeva correlate better with the factors of turbulence in Ukraine. Researchers are studying the characteristics of psychological well-being, life satisfaction and subjective happiness among students, and identifying the relationship between psychological well-being and self-actualisation. Analysis of the data shows that most indicators 118 CHAPTER 4 Educational policy and reforms: the impact of globalization 1. Standardisation of the process of modernisation and introduction of new practices in the management of educational institutions. 2. Organisation of monitoring of external and internal driving forces of educational institution management. The task is to ensure that managers understand the need for change in a timely manner. 3. Determination of the most appropriate policy for introducing innovative changes for a specific educational institution. 4. Awareness of the importance, necessity and inevitability of future transformations by one of the members of the administrative team of the educational institution, i.e. the presence of a kind of "ideological inspirer and generator of future ideas". 5. Forming a team (this refers not so much to an administrative or managerial team, which is an indispensable and necessary condition for transformation, but rather a team of ideological supporters – from the teaching staff, students, parents, technical staff, the public, methodologically and technologically prepared to implement innovation). 6. Development of a project idea for the development of the educational institution. This is the choice of the object of innovation, which (choice) must be based on the vital needs of a particular educational institution and be clearly understood by the majority of participants in the educational process. 7. Creation of a project team for the implementation of new management techniques, technologies, etc., endowed with the necessary powers. 8. Determination of specific management actions to implement the developed idea, i.e., drawing up a plan or programme for its implementation. In this case, it is advisable to determine not only the implementation deadlines, but also the period for assimilation of the changes. 9. Motivating members of the teaching staff, students, parents, technical staff, providing the team with a reasoned explanation of the reasons, essence and expected consequences of the changes being introduced, and preparing the relevant categories of educational institution employees for innovative activities. 10. Implementation of managerial and organisational changes within the framework of the project, discussion of possible scenarios and consequences of the implementation of changes. 11. Assessment of the relationship between the identified innovative changes and other changes and tasks of the educational institution for the planned period. 12. Recording the parameters of the impact of the changes introduced on the effectiveness of the following processes taking place in the educational institution: main (educational and training), support (personnel, financial, methodological, material and technical support) and managerial (analysis, planning, organisation, motivation, control, etc.). If the changes have a negative impact, it is necessary to learn to make unpopular decisions, up to and including abandoning the project. 13. Upon completion of the project, it is necessary to analyse its target effectiveness and identify the main reasons for failure. Each management and organisational change implemented must be accompanied by the following set of documents: 119 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 – an analytical note (description of the situation, the need that prompted the changes); – business plan (description of future changes, justification for their implementation, analysis of alternative solutions); – order (decision to introduce changes, appointment of a project team); – change implementation project (planning documents, reports on the implementation of measures); – expertise of the results of change implementation. The final result and success of introducing innovations in the management of educational institutions depend on the quality of this stage. In the context of the chosen topic, the managerial aspect of happiness proposed by O. Lyashenko seems interesting, as managers are difficult to survey and rarely answer questions sincerely, taking into account the possible consequences of their own answers or statements. Since you can only manage what you can measure, O. Lyashenko suggests measuring "hot and cold happiness" yourself using a special "Management Happiness Radar" (a variation on the coaching tool "wheel of life") based on the Harrington scale. The following components are proposed: – planning/executing plans; – organising/coordinating; – motivating/being motivated; – controlling/being controlled; – belonging to an organisation/team/project; – being a leader/training leaders; – communicating/networking; – learning/improving qualifications. The author assumes that each component can be assessed by the manager independently or with the (cautious) involvement of colleagues on a scale from zero to ten points. After summarising the results, it is possible to determine (of course, not without elements of subjectivity) the overall "Degree of Managerial Happiness": – 64–80 points – you are exceptionally happy (managerial happiness – "ardent"); – 48–63 points – you are almost happy (managerial happiness – "hot"); – 32–47 points – you feel a slight lack of happiness (managerial happiness – "warm"); – 17–31 points – you feel a significant lack of happiness (managerial happiness – "cool"); – less than 16 points – you are "unhappy" (managerial happiness – "icy"). Noting possible factors influencing managerial happiness, the author highlights Russia's aggression against Ukraine and the world, the riskiness of management, which is growing exponentially, changes in the global security environment, the use of violence (terrorism, criminal activity, the organisation of so-called "civil wars", subversive activities, etc.), non-military means of influence (in the diplomatic, information, economic, financial, trade, social and other spheres) [38]. This significantly changes the focus of the perception of managerial happiness, especially when it comes to the awareness of the value of human life, against the backdrop of which the ambition of certain managerial decisions loses its significance. 120 CHAPTER 4 Educational policy and reforms: the impact of globalization For purely professional and managerial reasons for low levels of happiness among managers, the author emphasises the lack of clarity in management theory and practice. In Ukraine today, all known management models are in operation simultaneously: from 1.0 to 4.0. The management hierarchies of version 1.0 are successfully complemented by the superstructure of "soft" technologies of version 2.0, multiplied by the confusion of version 3.0, the insufficient formation of version 4.0, and the declarative nature of version 5.0. An analysis of theoretical sources and the practical application of happiness as an indicator for determining, assessing and comparing the level, process and technology of management shows that Ukrainian and foreign scientists and management practitioners are paying attention to the issues under study. However, the problems of managing the level of happiness at the level of an individual organisation are not considered. The importance of issues related to managing the level of happiness at the level of an individual organisation is confirmed by the dependence of the feeling of happiness on professional success; the possibility of managing it at the level of the state, an individual institution, organisation, or individual. 4.4 Systematisation and generalisation of theoretical data on personnel management based on the theory of the "Economics of Happiness" Since the theory of "personnel management based on the economics of happiness" is only beginning to take shape, let us summarise the information obtained from theoretical sources. The goal of the management corps of an organisation or institution is to increase the level of happiness of its members. The achievement of this goal is ensured by a targeted strategy (combining economic and subjective components). The economic component is determined by the specifics of the institution, organisation or production and the specifics of remuneration in a particular sphere of economic activity. The activities of the management team aimed at improving the efficiency of the organisation will indirectly affect the economic component of employee happiness. As a subject of financial activity, an organisation or institution may introduce financial and material incentives based on the results of joint activities, thereby increasing the economic component of employee happiness. In our opinion, the subjective component of the happiness index can be broken down as follows: stress, individuals' life values, life satisfaction [39]. Thus, the level of the subjective component will be indicated not only by the assessment (happy – unhappy), but also by the level of morbidity as a result of stress (reduction of the thymus, enlargement of the adrenal cortex and the appearance of haemorrhages and even ulcers in the gastrointestinal tract mucosa). An increase in the incidence of disease among employees under the influence of these functional changes in the human body may indicate social, economic, and political tension in an institution or organisation, and, therefore, a decrease in the subjective feeling of happiness. Life and freedom are recognised as the most important and precious values. Therefore, 121 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 a comparison of indicators of the duration and state of human rights and freedoms will indicate the level of happiness in a given organisation. Recognising happiness as a determinant of the success of management bodies is a guide for creating an organisation or institution whose management policy (economic, social, environmental aspects) results in the happiness of employees through the satisfaction of human needs (economic, social, environmental). From the point of view of the typology of happiness archetypes, we classify needs as follows: hedonism, eudaimonia, rat race, nihilism, subjective well-being [13]. These typologies of happiness and their carriers do not exclude the need to satisfy Maslow's needs, but they significantly expand the range of attention of management teams and organisational policy regarding their variability. The implementation of electrotherapy or meditation classes is not enough from the point of view of the typology of happiness. For example, for hedonists, comfortable and beautiful housing, clothing, food, etc. are important – the start of the development of relevant industries and their stimulation (not only safe, but also beautiful and aesthetic). For eudemonists, it is important to have conditions for the development of various abilities – moral, intellectual, social, etc. The task for management teams is to create appropriate opportunities, conditions and access to them. Participants in the "rat race" are able to keep up with the frantic pace of achieving their goals, but obviously require a high level of service (in catering, healthcare, education, technical services, etc.) (not only safe, but also fast). We assume that developed services will attract the attention of representatives of other behavioural typologies of happiness. Everyone is both a user and a producer, and the task of management teams is to support and stimulate the constructive and limit the destructive (in terms of compliance with laws, environmental expediency, and sustainable development). We assume that in any organisation there are representatives of different archetypes of happiness; we assume that the typology of archetypes will develop over time. Thus, the level of happiness becomes a factor for comparing the dynamics of the development of organisations and institutions and the goal of management teams. We consider happiness management in an organisation to be a task for the management team: to increase the level of happiness of the members of the organisation or institution [18]. From a marketing perspective, different archetypes of happiness (hedonism, eudaimonia, rat race, nihilism, subjective well-being) and their representatives are none other than different customer groups, the satisfaction of whose needs allows for better solving of the tasks (achievement of happiness) of the user, enterprise, organisation and society as a whole. Further research, in our opinion, lies in the study of the characteristics of needs (primary and secondary, absolute and relative, higher and lower, positive and negative, general and specific, urgent, private, individual and group, etc.) and the development of an assortment matrix of services for each archetype; researching existing experience and developing practical ways of using available resources to ensure that future generations can also be happy; developing a conscious attitude towards the fact that natural resources are shared by all living things on the planet, and that meeting needs (in all 122 CHAPTER 4 Educational policy and reforms: the impact of globalization their diversity) also requires our "younger brothers"; creation of an appropriate scientific and practical platform for bringing together like-minded people – representatives of various fields of activity. Happiness management – the application of management methods 3.0, 4.0, 5.0. These are contained in the following provisions: all companies are networks (regardless of the hierarchical structure of the company), and management primarily affects people and their relationships; replacing the idea of an organisation as a hierarchy with the concept of multiple network relationships and interactions within any organisation and focusing management on these networks. When working with personnel in an organisation, it is important to pay attention to the following tasks: engagement, empowerment, compliance with boundaries, continuous improvement, competence, and structure using "digital technologies". Management 3.0 relies on the initiative of each employee, leaving no opportunity to "sit back" at the workplace, which creates an innovative climate within the organisation, leads to a synergistic effect of generating ideas, and the gradual introduction of Management 3.0, 4.0, and 5.0 into the management practices of modern companies in the context of innovative breakthroughs – the digitalisation of the economy and changes in the ways social interactions take place in production teams and organisations. 4.5 Personnel development management in the context of the theory of the "Economics of Happiness" as an innovative management practice Since personnel development management in the context of the "Economics of Happiness" theory is an innovative idea, it requires development in accordance with the innovation process. The author proposes the following stages of research and development of personnel development management in the context of the "Economics of Happiness" theory, which correspond to the classical search for innovations. Stage 1. Collecting and systematising ideas: – collecting information on personnel development management in the context of the "Economics of Happiness" theory in science, policy changes, technological changes in theoretical and periodical sources, from individual teachers, methodological associations, initiative groups, and end consumers of education: students, parents, employers (interests, wishes, requirements, etc.); – analysing the results of monitoring the effectiveness of management system components (management decisions, management technologies, organisational forms) in relation to personnel development management in the context of the "Economics of Happiness" theory; – collection of information about the potential capabilities of organisations and institutions in terms of developing and implementing personnel development management in the context of the "Economics of Happiness" theory (new management procedures, technologies, organisational forms, determination of the degree and extent of risk); 123 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 – collecting information about target groups whose lives, education and activities will be affected by personnel development management in the context of the "Economics of Happiness" theory, and long-term trends in their development. Stage II. Selection of identified ideas and development of innovative ideas for personnel development management in the context of the "Economics of Happiness" theory: – determining the possibilities for implementation in terms of personnel development management in the context of the "Economics of Happiness" theory; – determining the degree of technological commonality for personnel development management in the context of the "Economics of Happiness" theory and traditional forms of management; – consideration of the compliance of personnel development management in the context of the "Economics of Happiness" theory with the development strategy of the educational institution. Stage III. Analysis of the economic efficiency of personnel development management in the context of the "Economics of Happiness" theory: – the initial stage of innovation development (personnel development management in the context of the "Economics of Happiness" theory takes the form of a specific project); – determining the temporal and spatial characteristics of personnel development management in the context of the "Economics of Happiness" theory, assessing its quality; – determining the costs (investments) for the development and implementation of personnel development management in the context of the "Economics of Happiness" theory, sources of its financing; – availability of the necessary resources for implementation in the field of personnel development management in the context of the theory of "Economics of Happiness": financial, human, material and technical; – implementation deadlines for personnel development management in the context of the "Economics of Happiness" theory; – analysis and assessment of the profitability of personnel development management in the context of the "Economics of Happiness" theory. Stage IV. Development of innovation: – development of a specific innovative programme "Personnel development management in the context of the theory of "Economics of Happiness" with the definition of responsibilities by departments of the organisation; – preliminary testing (testing in the department, verification of the effectiveness of the personnel development management mechanism in the context of the "Economics of Happiness" theory, etc.). The traditional stages of research and development work and bringing them to prototypes when creating management innovations are usually absent. Based on a generalisation (the main stages of searching for and developing innovative changes; the stages of the process of developing and adopting a management decision on innovation; the institutional cycle of management activity; project technology), we propose the following algorithm 124 CHAPTER 4 Educational policy and reforms: the impact of globalization for introducing personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice in an educational institution: 1. Organisation of monitoring of external and internal driving forces of educational institution management. The task is to ensure that managers understand the need to introduce personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice. 2. Determination of the most appropriate policy for a particular educational institution for the implementation of personnel development management in the context of the theory of "Economics of Happiness" as an innovative management practice. 3. Awareness of the importance, necessity and inevitability of future transformations by one of the members of the administrative team of the educational institution, i.e. the presence of a kind of "ideological inspirer and generator of future ideas". 4. Formation of a team (this refers not so much to an administrative or managerial team, which is an indispensable and necessary condition for transformation, but rather a team of ideological supporters – from the teaching staff, students, parents, technical staff, the public, methodologically and technologically prepared to implement innovation). 5. Development of a project idea for personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice. This is the choice of the object of innovation, which (choice) must be based on the vital needs of a specific educational institution and be clearly understood by the majority of participants in the educational process. 6. Creation of a project team to introduce personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice by an educational institution with the necessary powers. 7. Determination of specific management actions for the introduction of personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice by an educational institution, i.e., drawing up a plan or programme for its implementation. In this case, it is advisable to determine not only the terms of implementation, but also the period of assimilation of changes. 8. Motivating members of the teaching staff, students, technical staff, providing a reasoned explanation to the staff of the reasons, essence and expected consequences of introducing personnel development management in the context of the theory of "Economics of Happiness" as an innovative management practice by an educational institution and preparing the relevant categories of employees of the educational institution for innovative activities. 9. Implementation of managerial and organisational changes within the framework of the project "Introduction of personnel development management in the context of the theory of "Economics of Happiness", discussion of possible scenarios and their consequences. 10. Assessment of the relationship between the introduction of personnel development management in the context of the "Economics of Happiness" theory and other changes and tasks of the educational institution for the planned period. 125 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 11. Recording the parameters of the impact of introducing personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice by the educational institution on the effectiveness of such processes taking place in the educational institution: main (educational and training), support (personnel, financial, methodological, material and technical support) and management (analysis, planning, organisation, motivation, control, etc.). 12. Upon completion of the project, it is necessary to analyse the target effectiveness of personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice and identify the main reasons for failures. The implementation of personnel development management in the context of the "Economics of Happiness" theory as an innovative management practice should be accompanied by the following package of documents: – an analytical note (description of the situation, the need that prompted the introduction of changes); – business plan (description of future changes, justification of their implementation, analysis of alternative solutions); – order (decision to introduce changes, appointment of a project team); – change implementation project (planning documents, reports on the implementation of measures); – expert assessment of the results of change implementation. The final result and success of introducing innovations in the management of educational institutions depend on the quality of this stage. 4.6 Proposals for the implementation of personnel development management in Ukrainian higher education institutions in the context of the "Economics of Happiness" theory As an example, we used open data (obtained from the website) of the Poltava V. G. Korolenko National Pedagogical University. Considering that these are typical documents, nominally and substantively similar in all state-owned higher education institutions subordinate to the Ministry of Education and Science of Ukraine as the authorised body, the proposals can be implemented in other higher education institutions in Ukraine. Since, according to paragraph 2.1 of the Statute, Poltava V. G. Korolenko National Pedagogical University is a state-owned higher education institution and is subordinate to the Ministry of Edu cation and Science of Ukraine as the authorised body, the initiative group, in accordance with paragraph 5.3.23 of the Statute, may submit a proposal regarding the implementation of personnel development management at Poltava V. G. Korolenko National Pedagogical University. of the Statute, may submit a proposal regarding the implementation of personnel development management at Poltava V. G. Korolenko National Pedagogical University in the context of the theory 126 CHAPTER 4 Educational policy and reforms: the impact of globalization of the "Economics of Happiness" to the authorities responsible for managing higher education, to amend existing or develop new regulatory and legal acts in the field of higher education, as well as to participate in the work on the relevant project. The developed draft "Management of the development of the staff of the Poltava V. G. Korolenko National Pedagogical University in the context of the theory of "Economics of Happiness" must be considered at the Conference of the University's labour collective and, in accordance with the decision of the Conference, the relevant changes must be made to the Statute. In particular, in part 3, it should be noted that the activities of the University's management are aimed at increasing the level of happiness of scientific and pedagogical workers, technical staff and students of all levels and educational programmes. In the initial provisions of the University Development Strategy, indicate that the development of the university is aimed at increasing the level of happiness of scientific, pedagogical and technical staff, students of all levels and educational programmes. The mission and model of the University should specify the main components of happiness, according to which development will be carried out and progress monitored. The conceptual foundations and directions of the University's development should include ways and means of increasing the level of happiness of scientific and pedagogical staff, technical staff and students of all levels and educational programmes. In the section on management development, indicate that the management of personnel development at the Poltava V. G. Korolenko National Pedagogical University will be developed in the context of the theory of the "Economics of Happiness" and management type 3.0. In the section "Educational activities", indicate the introduction of academic disciplines and elective courses such as "If you want to be happy, be happy", "Concepts of happiness among different peoples", etc. In the section "Scientific and Innovative Activities", indicate research and monitoring of the level of happiness at the University based on the identified characteristics and needs regarding happiness of scientific and pedagogical workers, technical staff, and students of all levels and educational programmes as promising areas. Within the structure of the University, create a group for the development of personnel management issues at the Poltava V. G. Korolenko National Pedagogical University, which will be developed in the context of the theory of "The Economics of Happiness". In the context of Management 3.0, we believe that idea management is promising. The full cycle of idea management looks like this: the birth of an idea; the formation of an initial pool; the development and enrichment of the idea; management evaluation; the selection of business ideas that have practical value for a specific organisation; refinement; implementation. It is clear that each stage, in turn, can be broken down and implemented in accordance with the characteristics of the higher education institution. The main thing that a system for obtaining and evaluating ideas will give a higher education institution is the proposals themselves. The ideas of employees on improving the work of the higher 127 chapter 4. Managing Staff Development in Higher Education Institutions through the Lens of the "Economics of Happiness" CHAPTER 4 education institution will allow for the improvement of technological and marketing processes and the introduction of innovations. In addition, working with ideas is important for employee motivation (employees understand that management listens to their opinions; a system of possible bonuses for authors of supported ideas will stimulate employee creativity). In our opinion, the conditions for the success of an idea management system are as follows: – mutual recognition of the capabilities and contributions of each employee; – free expression of opinion by each employee without fear of punishment; – unhindered exchange of ideas within the organisation (between senior managers, – managers, employees, consumers, partners and suppliers); – use of various communication systems for informal communication (regular meetings, exchanges of messages, opinions, thoughts); idea management is clearly controlled but not programmed; it arises on the basis of common interest or a topic that unites people and determines their desire to actively contribute to its development. In any idea management system, the means of collecting ideas are important. The most commonly used are "idea and suggestion boxes"; kaizen suggestions; automated tools. In the pre-digital era, suggestions were collected using an "idea and suggestion box" into which the author placed an idea written on paper. Such boxes were located in each division (department or workshop) of the enterprise. The use of a suggestion box as a means of collecting suggestions revealed the following limitations: the very principle of such a system is not transparent: the author cannot track the full cycle of consideration of the idea (ideas can be lost or stolen, it is difficult to analyse their flow, it is difficult to provide feedback to authors); the effectiveness of the procedures for selecting and evaluating employee proposals has been steadily declining due to the increasing complexity of ensuring the objectivity and competence of their implementation; the suggestion box did not allow for public discussion of ideas by the entire company team and their prompt implementation by individual interested employees; The lack of information about the results of the evaluation and implementation of the suggestions made affected the motivation of the authors for further creative activity. In the Kaizen proposal system, the main emphasis is not on individual creativity, but on collective work within teams of continuous improvement (so-called "quality circles", which bring together employees from different departments into informal groups). The disadvantage of this method of collecting ideas and suggestions is that it is difficult to use for the development of major product innovations. However, this disadvantage is overcome in the process of creating special venture teams and idea incubators, whose professional participants are clearly focused on finding promising, primarily breakthrough ideas in the organisation, their rapid implementation and promotion of the results obtained to the market [40]. The growing complexity of idea management in companies has led to the emergence and widespread use of special software products [41]. 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