Subject field – in the Management of Human Resources, we can find at least two aspects: the first aspect focuses on management as a process of goal setting, coordination, mobilization, and control over the main functions of management.
The second aspect emphasizes the hiring nature between the employer and the hired workforce, which presumably has a different, conflicting interest in the interest of the employer, which is why it is necessary to constantly maintain a balance of interests. The concept of HRM is a concept for the management of hired labor. Human Resources Management is the latest modern stage in the development of the management of the hired workforce, which follows and further develops the management of personnel.
Stages in the development of the concept for the management of the hired labor force. There are 6 stages
The first stage of the second half of the 19th century until the First World War. During the appointment of the first official for working conditions. Known as the Worker Care Stage. The first workers’ care association is established.
The second stage is the period between the two world wars. It is known as the period of scientific management of the workforce. Under the influence of Taylorism, the emphasis in management shifts from caring for workers to caring for the efficiency of the company. Second, the idea of narrow specialization of the workforce is being developed as a prerequisite. The idea of the scientifically based selection of the right person for the right job arises. The need for introductory specialization training. Fifth, labor standards are introduced as a means of measuring the work of individuals. The installment form of payment is introduced. For the first time, Taylor raised the question of the need to distinguish between the responsibilities of management and executive staff.
The third stage is from World War II to the 1950s. It is known as the period of industrial relations. This is the period of the rise of Keynesianism. New forms of part-time employment are being developed. The concentration of production is increasing. The strong concentration of production and labor shortages made unions strong during this period. During this period the beginning of the industrial dialogue was set. The requirements for the qualification of the hired labor force are growing, its specialization is deepening.
The desire for permanent employment is intensifying. There is a desire for a professional career. The new characteristics of the workforce provoke the perception of the workforce as staff. The concept of staff appears. The period of the emergence of the concept of personnel management.
The fourth stage is the 60s – 70s of the 20th century. It is known as the period of maturity of Personnel Management. The first sign of a decline in economic growth is labor productivity. The following new ideas emerge. The idea of the need for workforce planning, considered long-term numerical forecasting, is being developed. The second idea is the development of systematic lifelong learning. The third idea is to make the first plans for the professional careers of managers and key specialists. The system for evaluation of work performance is introduced. Dialogue with trade unions is developing. The question arises about the need to link personnel management with the company’s strategy. Surveys and opinion polls are becoming more and more popular. Sociology is becoming modern.
The fifth stage 80s of the 20th century is known as the entrepreneurial period of personnel management. It is characterized by an energy crisis, intensifying international competition between the three world trade centers – Japan, the United States, and Western Europe. Moving competition into the field of knowledge. This increased the importance of the human factor as a source of the company’s competitiveness. This has greatly increased the importance of the personnel management function. The first HR directors appeared. The connection between personnel management and the company’s strategy has been strengthened. New ideas have been developed on how to interact with staff, such as the idea of cooperation, trust, and empathy between the hired workforce and the employer. The idea of teamwork as a perfect form of work organization and structuring of the company’s activities is developing. The idea of the need to reconcile the interests of workers and employers has developed. The idea of the role of positive moods, values, attitudes, and feelings. These new moments in personnel management, demonstrated mostly by large multinational companies, a group of American scientists use the term HRM. Reference: Value-added human resources management, https://wikipedia-lab.org/value-added-human-resources-management/
The sixth stage of the 90s and the beginning of this century is known as the post-entrepreneurial stage of personnel management. This is the period for the dissemination of the concept of Human Resource Management (HRM). A new development was given to the idea of teamwork, the relationship of personnel management with the company’s strategy. For the convergence of the interests of the employee and the employer until their full merger (commitment) of interests.
Philosophy of Human Resource Management
The people in the organization are the most important (key) strategic resources, the expansion and effective use of which is a source of competitive advantage for the company.
The principle of creating conditions for the formation of positive attitudes, moods, feelings, and values is one of the duties of the personnel manager.
The principle of the close connection of personnel management with the company’s strategy.
The principle of creating conditions for the full merging of the interests of the employee and the employer (commitment).
Differences between the concepts of Personnel Management and Human Resource Management
Status of the function – personnel management is a middle managerial function, Human Resources Management is a top management function.
Like management, Personnel management is primarily administrative, routine. Human Resource Management is primarily strategic. Reference: “For Certified Human Resources Manager: The Internal Environment for HR Management“, https://customessaysonline.net/for-certified-human-resources-manager-the-internal-environment-for-hr-management/
In the object of management. In personnel management, the object of personnel is the executive staff (below the average level), in Human Resources Management the object of management is all under the top management. HRM is aimed mainly at other management staff.
By forms of control. Personnel management relies on external control. HRM relies on mutual control (team) and self-control based on pre-developed standards.
In the direction of management. Personnel management is focused on the position, Human Resources Management is focused on individuals within the position.
Scope of management activities. These are three new activities: developing an HR strategy as part of the company’s core strategy; participation in the development of the organizational management structure; management of organizational culture.
Different preferences for the organizational management structure. Personnel management is more efficient and involves hierarchical management structures. Human Resources Management – with less hierarchical structures. Reference: “Management practices for human resources focused on work in the organization“, https://www.worldforgemagazine.com/management-practices-for-human-resources-focused-on-work-in-the-organization/
Different philosophies. For PM, people are one of the factors of production, the savings of which increase efficiency. For HRM, investments in which they increase labor efficiency are simply a factor of production.
Factors determining the evolution of the concept of Personnel Management in Human Resource Management. We can find two major groups of factors:
The transition from mass production of goods and services for mass markets to production for strictly segmented markets is characterized by ever-changing requirements for the parameters of goods and services.
The demographic trend of an aging population worldwide. It makes the young human resource-scarce, which more fully meets the requirement for modern production, for which companies compete and try to attract and retain it.
The intensification of international competition between Japan, the United States, and Western Europe and the inflow of Japanese capital into Western countries.
Intellectual factors – the emergence of new theories and movements in science that favor the perception of the new concept of PM.
Pioneering authors – Peter Drucker and McGregor. Drucker develops the idea of goal management – an organization is effective when everyone in it contributes to a common goal. Reference: “For HR managers: Determining employee remuneration”, https://stc-montreal.org/for-hr-managers-determining-employee-remuneration/
The development of behavioral sciences
The emergence of the theory of organizational development 70’s – according to it, the effectiveness of the organization depends on the ability to constantly change following changes in the environment. At its core is the ability to change individuals formed through learning.
Movements for the analysis of organizational culture developed in the 80’s – developed mainly in the United States as an attempt to reveal the secret of Japanese rule.
Movement for the explanation of commitment – means first recognition of the goals and values of the organization as their own, second readiness and sacrifice of effort and time in the name of these goals; a third desire to retain membership in this organization; it is based on 3 factors: a sense of belonging to the organization; a sense of excitement; a sense of satisfaction with the management style
Dissemination of the HRM concept. It spreads slowly, gradually, in elements. The most common elements are:
Change in the status of the function;
Greater emphasis on training;
Attempts to form a new value system;
A gradual transition from hierarchical to less hierarchical structures; Reference: https://phron.org/for-hr-managers-buying-and-retaining-talented-employees/
The concept of Human Resource Management is more common in large multinational companies and less so in small companies.
Factors limiting the spread of the concept of HRM:
Bulgaria is characterized by small and medium-sized companies that are not active in the international market; they have no long-term strategies; small companies are run by people who do not have or have low management training; the old workforce;
Factors contributing to the spread of the HRM concept
Access to the European market; knowledge of the concept for a long time; Reference: “Management practices for human resources aimed at performing tasks“, https://ossalumni.org/management-practices-for-human-resources-aimed-at-performing-tasks/
There are two approaches – Michgant (hard) approach – non-acceptance approach;
The second approach is Harvard – full acceptance.
Strategic and operational human resource management. Modern approaches to human resource management in the organization.
Human resource management is a philosophy of people management, which is based on the thesis that human resources are resources crucial for achieving the business success of the organization. There are 3 main goals and objectives of personnel management and human resources: 1. Attracting candidates. 2. retention of desired employees. 3. motivating employees. More and more often another goal is added – qualification of employees. Effective management of human resources has a positive effect on the overall development of the company – increases productivity, quality.
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The human resources in the organization
The human resources in the organization with their professional qualifications and personal qualities make it possible to achieve economic goals. Human resource management, depending on the period for which decisions are made, can be considered a short-term, medium-term, and long-term management plan.
Usually, human resource management in the short and medium-term is perceived as operational management, and human resource management in the long term – as strategic management. Another criterion is often used to distinguish strategic from operational human resource management – the level at which decisions are made to manage employees in the labor process.
It is believed that human resource management is carried out by senior executives of the organization, assisted, of course, by human resources management specialists, and operational management is associated with the functions of line managers in the organization.