The European Journal of Applied Economics

AN ANALYSIS OF LABOR PRODUCTIVITY IN SERBIA'S HOTEL INDUSTRY

Vesna Filipović, Saša Mašić, Nikica Radović — Tue, 14 Oct 2025 00:00:00 +0200

Productivity, as a basic indicator of the success of a company's operations, shows the efficient use of labor in the work process. The subject of the research is labor productivity in the hotel industry of Serbia. The work aims to analyze the productivity of work in hotels from a natural and value aspect in 2022 and 2023. The analysis included hotels according to categorization (number of stars), size, and location of the facility. The research included 31 hotels, according to the categorization with three, four, and five stars. The financial data used in this analysis were taken from the financial reports of the observed business entities, on the website of the Agency for Business Registers. The obtained results show the growth of business income per employee in 2023 in nominal terms, and, at the same time, a decrease in real terms. Labor productivity shows an increase in hotels of the five-star category, as well as in small and large hotels.

THE FUTURE OF HR IN HOSPITALITY: TECHNOLOGY-DRIVEN HRM PRACTICES

Dušan Mandić, Dejan Ječmenica, Nataša Stanišić — Tue, 14 Oct 2025 11:18:08 +0200

HR has a crucial role in creating and implementing plans to attract, retain, and motivate staff in the highly competitive hotel industry. HR must use creative strategies to boost employee engagement and productivity as the sector faces labor challenges like high turnover rates and a lack of skilled workers. By optimizing hiring procedures, increasing retention, and personalizing career progression, technology-based HR strategies—such as AI-enhanced recruitment, gamified training, predictive analytics, and digital wellness programs—are revolutionizing workforce management.

The integration of virtual reality (VR) onboarding and AI-driven performance tracking enhances training efficiency, while predictive analytics enables HR professionals to identify employees at risk of leaving and implement targeted retention strategies. However, despite these benefits, challenges such as data privacy concerns, employee resistance to digital adoption, and high initial costs must be managed.

Predictive analytics enables HR professionals to identify potential departing employees and implement targeted retention strategies, while virtual reality (VR) onboarding and AI-powered performance monitoring enhance the efficacy of training. However, despite these benefits, there are still challenges that must be resolved, such as data privacy concerns, employee resistance to digital adoption, and high initial expenses. Through the effective integration of data-driven technologies and human-centered approaches, hotels may assure long-term success in a rapidly evolving business, increase employee productivity, and improve guest satisfaction.

AN AI APPROACH TO ANALYZING AND ENHANCING EMPLOYEE WELLBEING AND PRODUCTIVITY

Sonja Jovanovic, Aleksandar Petrović, Lazar Dražeta — Tue, 14 Oct 2025 11:19:24 +0200

This paper explores the complex concept of wellbeing, emphasizing its significance in both personal and professional contexts. Wellbeing encompasses physical, mental, emotional, social, spiritual, financial, career, occupational, intellectual, digital, and environmental dimensions. The COVID-19 pandemic has heightened awareness of mental and physical wellbeing, prompting organizations to prioritize these aspects. Effective wellbeing strategies enhance productivity, resilience, and overall organizational success. Remote work, a growing trend, offers flexibility and improved work-life balance but also presents challenges such as isolation and blurred boundaries. By understanding the evolution of remote work and implementing strategies to support employee wellbeing, organizations can foster a harmonious and productive work environment. Artificial intelligence is becoming instrumental for increasing employee performance and this work explores such approaches for better understanding and prediction of work trends. This paper underscores the importance of personalized wellbeing approaches, recognizing that individual needs vary, and generic solutions may not suffice. Ultimately, prioritizing wellbeing leads to sustainable personal and professional growth.

EVALUATING THE IMPACT OF INTEGRATED MANAGEMENT SYSTEMS ON OPERATIONAL RISKS AND FINANCIAL PERFORMANCE IN A RESEARCH ORGANIZATION

Marija Jonović, Lidija Barjaktarović, Nikola Stefanović — Tue, 14 Oct 2025 11:24:01 +0200

The study builds on the findings of Jonović et al. (2024) and aims to: 1) determine whether the implementation of Integrated Management Systems (IMS) based on the Committee of Sponsoring Organizations (COSO) Enterprise Risk Management (ERM) model improves sustainable operational risk management and financial performance in a Scientific research organization; and 2) develop a method for improving operational risk management and financial outcomes. Primary research includes SWOT (Strengths, Weaknesses, Opportunities, and Threats) analyses conducted from 2021 to 2024, with an average response rate of over 71%, confirming a sustainable business context. Following the PDCA (Plan-Do-Check-Act) cycle, it strives to enhance the response of the scientific research organizations to strategic goals and operational risks. It is supported with the analysis of financial indicators, as result of the secondary research (for the same period), and Pearson’s correlation, showing the impact of IMS based on the COSO ERM model on the organization's financial and operational stability. It emphasizes the importance of effective operational risk management for better financial performance. However, it suggests that implementing IMS is not enough to improve operational risk management within the organization. Future research should investigate comprehensive methods, diverse strategies, and comparative studies to enhance operational and financial outcomes.

BIOLOGICAL ASSETS IN FINANCIAL STATEMENTS: CHALLENGES AND APPLICATIONS OF IAS 41 IN SERBIA

Maja Kljajić, Mina Jovanović, Nataša Kilibarda, Vule Mizdraković — Tue, 14 Oct 2025 11:24:41 +0200

Agricultural activities, due to several specific characteristics, are regulated by a separate standard - International Accounting Standard 41 - Agriculture, which makes a clear difference between biological assets and agricultural products. The purpose of this paper is to consider the representation of biological assets in the financial reporting of public companies in the territory of the Republic of Serbia. In addition, content analysis of audit reports of sampled companies has been performed in order to determine the compliance of financial reporting related to biological assets and regulatory framework. The research was conducted on two samples, out of which the first one consisted of 582 public companies from the Belgrade Stock Exchange during 2017, and the other one covered content analysis of audit reports of 397 public companies from 2018. The results of the research show that in the sector of agriculture, forestry and fisheries, the most common item is the value of biological assets, where 17 public companies disclosed the value of biological assets according to IAS 41. The analysis of auditor reports revealed that, in general, sampled companies complied with IAS 41 and other regulatory framework when reporting on biological assets.

THE IMPORTANCE OF IMPLEMENTING FINANCIAL MANAGEMENT, CONTROL, AND IT IN PUBLIC SECTOR OPERATIONS IN THE REPUBLIC OF SERBIA

Slobodan Popović, Ivan Arnautović, Dejan Sredojević, Aleksandra Brakus — Tue, 14 Oct 2025 11:25:12 +0200

The goal of the work was to find out the trust of top managers of commercial banks, the management of the management bodies of local self-government units and top managers of public companies regarding the implementation of financial management and control, which is achieved by the application of IT systems as a management decision support system. We discovered that there are big differences in entities that did not implement financial management and control in regular business compared to those entities that did. In addition, in the following period, the factors given in the research should be taken into account, such as: completeness of beliefs, economy in work, business efficiency, effective business, contribution to the development of a public company and the overall score, as well as the fact that there is a significant deviation when observing those entities that do not apply and those that apply the mentioned control in business. In the end, the work indicates that it is possible to forecast future business, based on all three levels of management, primarily the public sector, as well as that it is necessary to consider innovative efforts such as the application of IT support systems.

THE EASTERLIN PARADOX IN ASEAN: WELFARE AND ECONOMIC GROWTH

Nastiti Anggita Sari, Andrian Dolfriandra Huruta, Robiyanto Robiyanto — Tue, 14 Oct 2025 11:25:43 +0200

Achieving a prosperous condition is a final goal that the state wants to achieve. Welfare is a benchmark in assessing the progress of a country. Therefore, the objective of the article is to analyze the Economic Welfare in ASEAN countries. Gross Domestic Product (GDP) is currently used to quantify welfare objectively. However, happiness as subjective measure of well-being is used in this research. The System Generalized Method of Moments (SYS-GMM) is used to determine the elements that influence welfare in ASEAN. The data included the human development index, GDP per capita, unemployment rate, happiness index, and dependency ratio for the nine ASEAN countries between 2006 and 2023. Both the dependency ratio and GDP per capita significantly and favorably impact the happiness index. Given that GDP per capita has a positive impact on happiness, the Easterlin Paradox theory of happiness is applicable in ASEAN. Nevertheless, the happiness index is unaffected by the Human Development Index and unemployment. In order to achieve inclusive prosperity, ASEAN governments must, among other things, strengthen and expand regional collaboration in ASEAN's major industries and in the areas of technology, health, and education.

THE MOST COMMONLY USED COMMUNICATION CHANNELS AS A SOURCE OF INFORMATION FOR ORGANIC FOOD BUYERS IN SERBIA

Vladimir Mitić, Milica Čolović — Tue, 14 Oct 2025 00:00:00 +0200

The organic food market has shown constant but insufficient growth in recent decades due to a number of factors, the most notable of which are high prices and insufficient consumer awareness. Better consumer awareness can be achieved by using the most effective digital and traditional marketing channels. The aim of this paper is to examine which digital and which traditional marketing channels are used by buyers to collect information about organic food. The research included 600 respondents from Serbia, and the SPSS program was used for data processing. The paper used descriptive statistics and non-parametric techniques due to the distribution of scores that deviates from normal. The research results showed that buyers of organic food rely more on digital marketing channels, primarily social networks and websites. When it comes to traditional marketing channels, TV, radio and newspapers are in first place.

THE ROLE OF ENERGY STORAGE TECHNOLOGIES IN DECARBONIZING ENERGY SECTOR

Vlastimir Vucic — Tue, 14 Oct 2025 11:30:24 +0200

A mounting requirement to increase the capacity for storing the energy generated from renewables drives the energy storage sector. However, there is no one-size-fits-all approach when it comes to storing energy. Relevant to the recent growth in energy storage are Battery Energy Storage Systems (BESS), particularly those based on lithium-ion. During the last decade, the cost of lithium-ion batteries has decreased by more than 90%, with battery cell prices estimated to continue this downward trend, adding to the attractiveness of energy storage. Major countries retain focus on lithium-ion batteries' supply chain, following their ambitions to build local manufacturing, gain international advantage, attract investment, and create jobs. Another crucial concern is linked to raw material supplies. Challenges for developing countries include a lack of skilled human resources and adequate monitoring and control equipment, underdeveloped or non-existent grid infrastructure, insufficient generation capacity, poor supply security, etc. Energy storage can boost reliability, which is vital when shifting from thermal projects to hybrid ones. Hence, this research investigates the general attitude over energy storage adoption and widespread use, including economic constraints, industry acceptance, contemporary technology, and regulatory barriers.

AGRITOURISM AS A CATALYST FOR SUSTAINABLE RURAL DEVELOPMENT: A LITERATURE REVIEW

Jovana Davidović, Danijela Pantović, Andrej Mićović — Tue, 14 Oct 2025 00:00:00 +0200

Agritourism plays a crucial role in promoting sustainable development in rural areas by integrating tourism with agricultural practices. This form of rural tourism not only supports the preservation of natural and cultural heritage but also fosters economic growth and social cohesion in communities often affected by depopulation and economic decline. Sustainable practices within agritourism, such as organic farming, energy efficiency, and eco-friendly activities, further enhance its viability as a development strategy. This paper reviews existing literature on agritourism as a key strategy for sustainable rural development, with a particular focus on its potential application in the Republic of Serbia. Furthermore, significant and relevant data from statistical databases in the country are presented, shedding light on the current state of agritourism development. The paper emphasizes the importance of effectively managing sustainable agritourism development and proposes key research questions for further exploration. These questions aim to enhance understanding of sustainable agritourism in the Republic of Serbia. By synthesizing existing findings, the paper also highlights the need for continued research in this field to inform decision-making and develop effective strategies for rural development.