Types of Human Resource Management

Types of Human Resource Management

The management of human resources in the organization is a difficult task that all CEOs and Human Resources Managers must perform responsibly and on a daily basis.

There are two models of human resource management – the “solid” approach and the “soft” approach (also called the “flexible” or agile approach). Reference: “Methods for human resources and personnel management”, https://managerspost.com/methods-for-human-resources-and-personnel-management/

A solid approach to human resource management

The “hard” approach is related to the understanding of people management, like all other resources in the organization.

This approach is based on the quantitative, measurable, and strategic aspects of labor force management and is carried out with such “rational” methods as are used for any other economic factor.

The philosophy of this business-oriented human resources management approach emphasizes the need to manage people with such methods that would contribute to the creation of added value and the formation of competitive advantage of the organization. Reference: “HR Certification Online with the BVOP Human Resources Certification Programs”, https://bvop.org/humanresources/

At the same time, people are seen as human capital, which, with the necessary investment in its development, can provide the desired income. Guest (Guest, 1999) defines workers “as a key resource in the hands of managers” in the latter way:

“The drive to implement Human Resource Management stems from the organization’s need to adequately respond to external threats from fierce competition. This concept becomes attractive to managers who are forced to find a competitive advantage for their companies when they finally understand that to achieve the goals it is necessary to invest not only in new technologies but also in human resources. ” Reference: “Human resources policies in the field of social protection”, https://mstsnl.net/human-resources-policies-in-the-field-of-social-protection/

Gest also argues that human resource management is “a reflection of the historically established capitalist tradition of treating the worker as a commodity.”

An agile approach to personnel management

The roots of the flexible approach to Human Resource Management come from the school of human relations, based on communication, motivation, and leadership.

The main idea of ​​the flexible approach to Human Resource Management is to achieve the attachment of the “hearts and minds” of workers to the goals of the company by involving them in the process of creating favorable conditions for communication and exchange of information.

Considerable attention is paid to the key role of organizational culture.

The focus of this approach is “reciprocity” – the belief that the interests of management and employees can and should coincide. In other words, this is a unitarian approach.

Regardless of which of the models the organization applies, the approach to carrying out the activity presupposes a single cycle of Human Resources Management.

This cycle includes several phases: selection, presentation, encouragement, reward, development. The presentation is guided by the Human Resources Management, which is achieved by selecting the right people for the right place, evaluating the performance, linking the results with the remuneration and the whole development of the employees. 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/

Human resources (staff) are the decisive factor for the company’s success. People are the most valuable resource not only because the company pays very dearly for them, but also because people with their intelligence create other factors of production.

The human resources management plan must stem from the company’s mission, goals, and strategy. ensures the implementation of the production program and helps achieve maximum efficiency. Reference: “Human Resources Management Plan Example”, https://w-europe.org/human-resources-management-plan-example/

The definition of the policy, the main goals, and the strategies constitute the strategic part of the human resources management / HRM /. The complex of specific activities that we plan to perform in the various areas of provision, development, productive use of staff is the operational part of the Human Resources Management.

Determining the needs of staff in the organization

The needs for staff are determined by different approaches and methods depending on the specifics of the activity and the size of the company, as well as on the preferences of the entrepreneur – expert assessment, direct calculations, mathematical models, etc.

For small companies, expert assessment is most often applied, based on the institution of the entrepreneur, the practice of such companies, and their own experience. 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/

The model of direct calculations is based on the calculation of the total amount of work in normal hours, which must be done to achieve the company’s goals through the relevant planning period.

For workers who will work according to labor standards – is defined as the number of products multiplied by the standard time for 1 product.

For workers who serve customers, machines, or are on duty, based on the length of hours per working day.

The needs of executive staff for jobs thus determined are summed up and the general need of the company is obtained.

The problem with determining the number of employees / managerial and administrative staff / is more complicated because their functions are difficult to measure, which is why it is based on the management structure and the distribution of work responsibilities of these categories of staff.

The determined number of staff for the first year of the company serves as a starting point for determining the number of staff in subsequent years.

The basic number is multiplied by a coefficient that reflects the increase or decrease in the volume of production in the following years, taking into account the change in the succession. Once the staffing needs have been determined, a staffing schedule is drawn up, which contains:

1.Category staff
2. title of the position
3. code of the national classification of professions
4. structural unit
5. education is needed
6. number of employees in this specialty

When the names of the persons are also indicated in the schedule, we have a named staff list.

To achieve a rational division of labor, job descriptions may be used, including:

1. job description
2. requirements to the contractor

Once we have determined how many and what kind of people are needed, the next step is to decide how to select, attract and hire the relevant employees. For this purpose:

1. we determine the requirements of the candidates
2. we recruit suitable candidates
3. preliminary selection of the candidates
4. assessment of their qualities through the interview, testing, etc.

Ranking of candidates: Contracts with a probationary period are increasingly used.

Determining staff costs

To provide, maintain and develop network workforce functions, the entrepreneur must incur costs for:

1. salary
2. insurance contributions
3. Recruitment, selection, dismissal of staff
4. staff training
5. ensuring safe working conditions
6. social and cultural services
7. additional benefits – business trips, company cars, etc.

Some of these costs are mandatory and the rest depend on the company’s policy. Reference: “How to make a Human Resources plan for our organization”, https://mpmu.org/how-to-make-a-human-resources-plan-for-our-organization/

Salary planning

There are many models for determining the salary. The most popular are:

The calculation is a result of the planned staff with the planned average gross salary. This method is simple but requires accurate forecasting of staff numbers and the level of the average gross salary.
Calculation with a coefficient concerning the expected revenues, added value, or profit during the planning period.
Calculation based on the costs incurred during the base period, increased by a factor reflecting the expected cost of living.

Calculation of gross salary

Gross salary includes the basic monthly salary (BMS), additional work obligations (AWO), and incentive supplements (IS) or sanctions

Gross salary = BMS + AWO + IS

Calculation of BMS – is determined depending on the complexity, weight, and responsibility of the work, necessary.

These factors are reflected in the evaluation and grading of work, functions, and positions in the company, which can be done through the summary or analytical method.

In the summary approach, an expert evaluation of the work, functions, and positions is performed in ascending order and a job scale is constructed. The value of the respective degrees in the scale is reflected by a coefficient of diversification. Auxiliary positions are placed in the lowest degree, etc.
Job scales can also be built on a point system.

Additional remuneration. They are:

For long-term work (in% of GS)
For night work
For work in harmful conditions
For higher personal qualification For the time during which the employee is available to the employer
For a stay
For work performed – 50% on working days, 75% on weekends, and 100% on public holidays.

Stimulating supplements. They are stimulating workers:

Pay per task
Pay for time savings
Commission supplements
Individual bonuses

More on the topic: Reference: “Human resource management plan in project management practices”, https://bpedia.org/human-resource-management-plan-in-project-management-practices/

Group supplements stimulate the workforce. The company-wide supplements are for all staff, as% of the gross salary.
In modern organizations, the place and role of the human resources department are extremely important for strategic planning and successful operation in the domestic and international market. Managers are focusing more and more on introducing employee motivation programs, training and retraining programs, changes in the company culture, rather than on technological solutions. The reasons for this are the rapid changes in the external environment, creating strategic needs for experience in human resource management. These changes are expressed in:

The increasing cost of maintaining human resources;
The changed demographic situation and the limited supply of professionals;
Innovations in technology;
Complicating the legal and regulatory framework of employment and labor relations;
Increasing international competition.

In small organizations, there is usually no human resources department, and personnel functions are taken over by owners, CEOs, or other employees. However, with the growth of these small organizations, the need arose to create such a department. There are four models with different structuring of human resources management:

Functional type of distribution. It groups the main functions of human resource management: recruitment, selection, evaluation, remuneration, training, and development. The activities are transferred to the subordinate areas. this allows for in-depth professionalization of work, but at the same time leads to limited competencies.

Division of the type “goals”. In this model, the human resources department divides its activities into two main areas:
Prevention of job dissatisfaction;
Increasing job satisfaction.

Reference type of division. In this model, clerks from the human resources department are attached to the individual divisions in the organization. The clerk must have a broad qualification, provide advice and participate in solving the problem.

Division of labor according to categories of staff

Division of labor according to the categories of staff – management, contractors and associates, service, etc. The members of the human resources department must have higher competence, as they take on all activities from recruitment and selection to employment for the relevant category of staff.

The distribution of competencies between the human resources department and the line managers in the professional departments is essential. At the same time, without the support of senior, middle and lower management, human resource management programs would not be successful.

The main activities in the Human Resources Management Department can be qualified in the following areas:

strategic – human resources policy, strategies for human resources development, planning the needs of human resources;
expert – planning, training and development, development of industrial relations, control over labor and other disputes;
service – recruitment and selection, job analysis, design of job descriptions, compensation and bonuses, communications, and human resources database.

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