Currently, human capital is considered as one of the main assets of a modern company. Continuous investment in the development of human resources is profitable and brings many benefits and profits to the company. Thanks to this approach, the field of human resource management is developing more and more, defining the goals, methods and tasks faced by modern organizations.
The relevance of the study of this direction of activity of modern organizations is that in Russian conditions one of the factors of competitiveness and survival of a company is ensuring a high quality of personnel potential, which can be achieved through the implementation of a rational personnel policy.
Concept
Human resources policy is one of the elements of a company’s strategy, which consists of procedures and practices for working with company personnel. It should ensure the satisfaction of needs, ambitions and professional aspirations in achieving the goals and objectives of the enterprise.
Personnel policy is a term used interchangeably with the term “personnel management”. The essence of the organization’s personnel policy is that this concept is at the same time an important element of the entire enterprise management system, that is, a set of interconnected components consisting of the following subsystems: selection of employees for jobs, their assessment, adaptation and training, promotion, salary , organization and management of workers, social activity and social security. It is necessary to adapt the personnel policy to the management system that has developed in a particular company, since it remains closely related to it.
Essence
The concept and essence of the personnel policy of an organization is a system of rules and norms that must be understood and stated in a certain way. They bring the human resource in line with the overall plan of the company. It turns out that all activities for working with personnel (selection, staffing, certification, training, promotion) are planned in advance and agreed upon with the general presentation of the organization's goals and objectives.
The essence of the organization’s personnel policy is that it is focused on bringing the personnel potential in line with the goals and tactics of the development of the entire company. Those industrial processes that occur in the organization require specific staffing. Personnel management is designed to provide the human resource that is needed for the normal operation of the organization.
Development genesis
The genesis of the concept of personnel policy should be considered in the context of the functions of personnel management in the company.
Before World War II, this concept was associated more with social benefits. Over the years, the concept of personnel policy has been significantly expanded. In the 1940s and 50s of the twentieth century, company personnel developed rapidly. His responsibilities included recruiting, selecting, training new employees and managing remuneration. At the same time, the number of specialists involved in training at enterprises, job evaluation, and employment planning has increased. Since that time, we can talk about the development of the personnel function, that is, all types of activities related to the functioning of people in the enterprise.
The main stages in the development of the concept of personnel policy and the essence of personnel policy are as follows:
- pre-industrial era - the period of creators who were engaged in such activities: hunting, warehousing, clothing manufacturing, agriculture, ore mining, metalworking, construction, trade, crafts;
- industrial era - the period of specialists - the development of industry, mass production, the creation of many easy-to-learn organizational structures, permanent jobs, job evaluation, labor costs, labor relations, wages based on working time;
- the era of the post-industrial period - the period of staff collaboration - the creation of flexible production systems, the use of information systems, organization, restructuring, reengineering, service development, customer focus, HR strategies, multitasking, flexible forms of employment and remuneration, group forms of work, audit, outsourcing , employment, coaching, intellectual capital, knowledge management.
In the 80s, trade unions began to appear, the activity of which was aimed at representing workers and taking care of their proper interpersonal relations with employers. A lot of attention in their activities is paid to continuing education programs, as well as employee motivation and assessment systems.
In the 1990s, teamwork and determination, which were necessary for the proper functioning of the company, gradually began to dominate. The process of standardization of training systems in connection with the mergers of enterprises is ongoing.
Role
The essence and role of personnel policy in the organization at the present stage of entrepreneurship is huge.
In practice, personnel policy, as a living organism, is sensitive to changes that occur in a company. The need to implement an intensive and focused staff policy was fully recognized in countries with market economies.
A prerequisite for this was the emergence of system leadership as an opportunity for the emergence of a new model of human resource management.
The management of most of the companies and firms does not fully form the need and role of personnel policy. And it is of great importance also because it is aimed at the development of human resources. This type of management is a fundamental prerequisite for the development of technology management personnel of the organization. The compliance of the personnel strategy with the general development plan of the company is recognized as fundamental.
The increasing role of personnel policy in Russian organizations is caused by radical changes in the social and financial criteria in which they now operate. But the personnel management of Russian companies comes down mainly to the hiring and dismissal of employees, the preparation of personnel documentation, and this is not enough for effective implementation of commercial activities in modern conditions.
Functions
The functions of personnel policy and the essence of personnel policy are closely interconnected.
Among the main functions are the following:
- The planning function requires the prediction of factors that may affect the organization, prepares appropriate methods of influence on them.
- The organizational function includes a sequence of preparatory activities for the implementation of planned tasks. The role of the manager here is to create an organizational structure that, taking into account the data obtained as a result of the implementation of planning activities, will contribute to the achievement of tasks.
- The control function includes actions consisting in comparing the actual parameter with the adopted model.
Basic goals
Personnel policy, like any other, is a confident, endless process of flexible change of goals, abilities and skills. The selection of appropriate employees necessary to perform the basic functions of the company can be considered as basic goals of personnel management.
The essence and objectives of personnel policy are presented below.
The first goal requires meeting the following criteria:
- determination of quantitative and qualitative needs in the field of labor resources;
- competent selection and hiring of employees;
- competency management of managers and employees;
- team building and development;
- leadership development.
The second goal requires the development of the following processes:
- monitoring the effectiveness of personnel at the enterprise, the reasons for growth and decline;
- analysis of the needs of personnel in the enterprise;
- design, implementation and transformation of motivational communication systems.
However, not all goals of the personnel policy are universal, therefore they cannot be used in any company. Enterprises differ in the nature of the business, the environment in which they work, in the organization of work, in groups of people, even in the problems they face. Therefore, each goal can be specifically adapted to the studied company.
Main goals
The personnel management field should fulfill its tasks at the highest possible level. This process directly affects the success of the company, its effectiveness and profitability.
The essence and objectives of personnel policy are presented below:
- Tool management: the responsibility of the human resources department is to develop the most appropriate personal and economic system. It contains a description of all the functions of employees and their requirements, organization of time and place of work, information about the corporate culture and goals of the enterprise. It also includes an assessment of the potential of human capital, the wage system, bonuses, and the recruitment and selection of new employees. Management tools that are important to the enterprise help them make urgent decisions.
- Competency management: this role is responsible for the proper adaptation of people in positions. The thoroughness and detail of this function affects the organization’s willingness to reliably and quickly perform its tasks. This is expressed directly in the presence of people with the appropriate qualifications and competencies in certain positions. Factors such as knowledge, experience, skills, abilities, and even employee value systems may be important here. The so-called competency cube, which contains a basic description of the elements of personnel development, helps in choosing the right people.
- Change Management: Organizations are increasingly recognizing the need for ongoing flexibility. A modern, dynamic environment requires companies to respond quickly and continuously and improve. The personnel department is responsible for planning the necessary activities in the field of communication, employee participation. He later manages the stabilization process and eliminates crises.
- Value creation management: this area is based on a quantitative assessment of costs and results of work, as well as on the representation of personnel labor in monetary units.
Essence and Directions
The essence and directions of the personnel policy are to determine the goals associated with the formation of the social potential of the company, as well as to ensure the highest possible degree of desire for their implementation in the existing external and internal conditions. In the above definition, three main areas of personnel policy should be distinguished.
The first of these is the assumption that the personnel policy, like any other, should be aimed at the development, achievement of specific assumptions of plans and concepts.
The second aspect is related to implementation. The programming and planning process, which is also not a policy, should be treated equally.
A third aspect relates to the need to come to terms with the fact that some goals cannot be achieved, while others are not worth it. Therefore, planning and implementation must be flexible.
The policies are strongly influenced by each other. Changing even one of them changes the other. That is why the goals of personnel policy and the mission of the company are inextricably linked. Personnel policy serves the mission of the company, which, in turn, is of paramount importance. Moreover, the relationship between these two concepts has some feedback characteristics: on the one hand, a mission affects the personnel policy of a company, and on the other hand, without a properly implemented personnel policy, a mission cannot be realized.
Kinds
The concept of personnel policy is not just a change in the definition of existing traditional terms. In accordance with this concept, a completely new paradigm of human capital management is being formed. The new philosophy draws attention to the fact that human resources are capital that needs to be increased.
The model presentation of personnel policy includes the following elements:
- HR strategy, which is part of the organization’s strategy and concept, forming and attracting human resources to achieve specific goals;
- personal interests combined with core business processes;
- instruments.
The nature and types of personnel policies of an organization can be reflected in two models: the Michigan model and the Harvard model.
Michigan Model
The concept of the Michigan model was developed by a team of researchers at the University of Michigan. The result of their activities was the formation of the concept of strategic personnel management, in which personnel management was combined with the structure and strategy of the company.
The essence of this type of policy is to link all aspects of the functioning of the company and the impact on it of economic, political and cultural forces. In this model, human resources and organizational structure should be managed in accordance with the overall strategy. The corresponding model lists the main interrelated functions that form the personnel policy cycle.
Increasing the company's flexibility in the market will largely depend on the qualifications of the staff. The faster the level of knowledge and skills of employees to constantly changing conditions improves, the greater the likelihood of success for the whole company as a whole. Therefore, the proper functioning of the enterprise depends, first of all, on the relevant decisions of the staff, which should adjust the quality of the employee’s competencies depending on the position held. To a large extent, increasing competitiveness also depends on the approach of employees to their work. People whose professional position is safe and reliable will be more effective and involved in self-development. In this case, the very good motivation is the possibility of promotion in the hierarchy of the company.
The main areas of personnel policy and the essence of personnel policy in this model include: employee participation, mobility, types of motivation and organization of work. The assumption of this concept lies in the possibility of influence of both external stakeholders (e.g. shareholders, government, local governments, customers and suppliers), and internal (e.g. employees, management personnel, trade unions), as well as external situational factors (law of value, labor market and technological change, strategy, management philosophy, tasks).
Harvard Model
Personnel policy in the Harvard model directly affects the involvement, competencies, human resource efficiency, which has a long-term effect of individual satisfaction, organizational effectiveness and social well-being. All these areas are interconnected with each other.
These models are hard (Michigan model) and soft (Harvard model) approaches to personnel policy.
Directions
The concept and essence of personnel policy can be reflected through a system of elements:
- staff needs planning: it is important to determine how many people will perform this work and what qualifications they must demonstrate;
- personnel selection: from among people with high professional qualifications choose those who will be most suitable for a specific task;
- advanced training system;
- performance appraisal of an employee;
- principles of staff remuneration;
- state and structure of employment;
- motivational system;
- organizational provisions.
The main direction of personnel policy is the need to take care not only of maximizing profits and financial success of the enterprise, but also to create convenient working conditions and development opportunities for employees. Then they will become the best guarantee for the development of a company.
Features in government agencies
Consider the essence of state personnel policy.
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Conclusion
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Personnel policy and the essence of personnel policy is a long-term concept of working with people, which is aimed at shaping and involving them appropriately in the production process. Companies should be focused on the activation of employees in order to direct them to individual improvement and change, which, in turn, helps to increase and develop their personal competencies.