Purpose. Theoretical and methodical substantiation of the approach intended to improve management processes of personnel potential development at an industrial region, and development of practical recommendations for its implementation. Methodology. The research employed the following methods: the analysis and synthesis, induction and deduction, system analysis (for specification of the "reengineering" and "business process" concepts), graphic (for the obvious diagramming of theoretical and practical results of research). Findings. The approaches to the process of formation of personnel potential were analysed. The results show that modern business process of formation of personnel potential has the following features: process of formation of personnel potential is partially allocated and regulated; there is no uniform policy of creation of a personnel reserve; the market of educational services does not meet the requirements of the labour market; there is no appropriate system of professional orientation. It was proved theoretically that reengineering of business process of formation of personnel potential defines the orientation of the state to the social and personnel policy on improvement of quality of life of the population, improvement of vocational structure of labor, balancing of supply and demand in labor market. The model of the business process of the personnel potential development has been suggested. Originality. A methodological approach to the creation of a chain of processes of formation, development and management of personnel potential was offered. The necessity of restructuring of such processes by means of reengineering was proved. Practical value. The created methodological approach allows us to systematize the stages of formation and development of personnel potential, to indicate the main and auxiliary processes, and processes of personnel potential management. This allows us to study in more detail the plans of strategic and tactical development and use of the personnel potential, in order to build an effective personnel policy of a region.

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