Human resource and personnel management is an essential part of the management of any organization.
Human resources managers, directors, CEO, CIO, and many other roles are involved in this important organizational activity. Certified HR managers, for example, know how to make human resources plans and manage the people in the organization. Reference: “HR Certification Online with the BVOP Human Resources Certification Programs”, https://bvop.org/humanresources/
Many of the competition challenges that modern business faces require a change in traditional policies, practices, and the ability to manage people in organizations. They need to become flexible, dynamic with the ability to react quickly to the situation in their environment.
One of these reasons for the need for change is related to the functioning of a different type of knowledge-based economy, unlike the previous one with the main resource capital. Today, the symbol of success is large organizations working with fewer people, but entirely knowledge-oriented.
Another reason is the availability of the Internet. This gives people unlimited opportunities for information exchange and very fast communication.
The third reason is globalization in modern business.
In a broad sense, personnel management can be defined as a strategic and consistent approach to managing the most valuable capital of the organization – the people working there, who individually or collectively contribute to achieving its goals related to competitive advantages in the market.
To work effectively, every organization needs resources, including its employees and workers. However, their skillful management requires a set of competencies leading to the effective implementation of the processes of recruitment and selection, motivation, evaluation, remuneration, training. These competencies are the essence of the philosophy of human resource management. Reference: “Human resources policies in the field of social protection”, https://mstsnl.net/human-resources-policies-in-the-field-of-social-protection/
In the theoretical development of the topic, there are certain differences in the terminology used by the different academic teams.
Human resource management, depending on the period for which decisions are made, can be considered as short-term, medium-term, and long-term management.
The management of human resources in the short and medium-term is perceived as operational management and the management of human resources in the long run as strategic management.
To distinguish the strategic from the operational management, another criterion is used – the level, but which decisions are made for the management of the employees in the labor process.
They understand the strategic management of human resources as “the activity of the senior managers of the organization for the management of persons employed in the labor process, aimed at developing and implementing the long-term strategy of the organization in this area, as well as developing and implementing functional strategies which are necessary to achieve the long-term goals of the organization ”. Reference: “Human Resources Management Plan Example”, https://w-europe.org/human-resources-management-plan-example/
The strategy of the organization in the field of human resources is materialized in the following functional strategies:
For hiring and firing workers to streamline production, optimize the number of workers, and the use of various methods and tools for selecting and hiring new workers.
Human resources development strategy
The main goals are in the field of education, raising the qualification and retraining of the employees, as well as their motivation.
For the salary and the additional benefits – their ratio, payment systems, the participation of the workers in the distribution of the profit as well as the additional salaries and the structure of the gross salary.
The strategy for the interaction with the organizations, the workers, and the employees determines individual and collective labor conflicts, improvement of the regulatory processes in the organization, attraction of the workers and employees in the management. Reference: “Get a Human Resources Manager certificate with a good training course”, https://eduwiki.me/get-a-human-resources-manager-certificate-with-a-good-training-course/
The strategy for the efficient use of the labor force is aimed at improving the organization of labor, designing effective positions, and motivating workers.
Human resources management system
In the book “Human Resources Management” the authors consider the management of human resources as a system of elements and relationships between them, the functioning of which creates conditions for effective implementation of the goals of the organization.
According to the authors, a system of human resource management means: “all activities that must be carried out within its framework, the links between them, their interaction with the environment and the way of functioning to achieve the goals of the organization.”
As elements in the human resources management system, they define all activities that must be carried out within its framework: analysis and design of positions, human resources planning, selection, training, and evaluation of staff, remuneration, ensuring safe and healthy working conditions, improvement of labor relations. Reference: “Example of Human Resources plan of an IT / Software company”, https://www.islandjournal.net/example-of-human-resources-plan-of-an-it-software-company/
In contrast, authors define the following elements in the organization of labor: the division and cooperation of labor, the forms of labor organization, the organization and service of workplaces, the methods of work, the modes of work and rest, the discipline of labor, labor rationing, staff qualification, spiritual and material stimulation.
Characteristics of the human resources management system
The summary of the views of the above-mentioned authors and the opinion of some other scientists helps to compile a consolidated list of the distinctive features of the human resources management system, which manifests itself as a new paradigm of human management. Reference: “Human resource management plan in project management practices”, https://bpedia.org/human-resource-management-plan-in-project-management-practices/
The following is a list of key features:
Human resource management emphasizes the importance of forming a commitment to the mission and values of the company, ie it is a model “oriented to commitment”.
Human resource management is based on the awareness of the need for strategic compliance – integration of personnel and organizational strategy
This activity is stimulated by the top management
Implementation of a human resources management system and the responsibility for the results is assigned to the line managers
Human resource management makes a measurable contribution to the formation and maintenance of competitive advantage and focuses on creating additional values, especially for shareholders. Reference: “How to make a Human Resources plan for our organization”, https://mpmu.org/how-to-make-a-human-resources-plan-for-our-organization/
Human resources management is a comprehensive and comprehensive approach to the implementation of mutually supportive principles and methods for the formation of personnel policy, ie to develop a comprehensive system of policy and practice in the field of human resources
Particular attention is paid to the formation of the culture and values of the company
Human resource management is a performance-oriented activity, emphasizes the need to constantly move forward to new frontiers so that the company is always ready to solve new tasks
Labor relations are unitary rather than pluralistic and are oriented towards individual workers rather than the collective as a whole.
The organization of processes is based on the principles of constraint and decentralization with the introduction of flexible roles, the concentration of the process (ie the ways of functioning, especially those that go beyond the traditional organizational framework) and have a higher level of team building on the principles of flexibility.
Of particular importance are quality customer service and achieving a high level of customer satisfaction.
Differentiated remuneration system based on performance, competence, personal contribution, or qualification.
Organizational principles – changes in the environment (economy, Internet, globalization, knowledge base) inevitably require changes in the organization related to competitiveness, the ability to react quickly and adequately. This leads to decentralization, the autonomy of managers, a requirement to monitor the results achieved by the use of basic resources, change of individual teams with a wide range of competencies and competencies.
Of all the characteristics listed above, the first two are priority: forming attachment and achieving strategic compliance.