Human resource management (HRM)

Management of the personnel = management of human resources

Human resource management: the decision of a question on definition of the standard for suitable candidates, selection of suitable workers, selection of workers, installation of standards of work, indemnification to workers, an estimation of performance of work, consultation of workers, training and development of workers;

Management of the personnel (now more known as management of human resources) uses concepts and methods which are necessary for using at work with the personnel. They are:

• The analysis of work (definition of a kind of work of each employee),
• Planning requirement for the personnel and hiring of candidates for work,
• Selection of candidates,
• Orientation and training of new workers,
• Management of a payment,
• Maintenance of motivation and privileges,
• An estimation of performance,
• Relations,
• Training and development,
• Make workers responsible,
• Health and safety of workers,
• Work with complaints and labour relations.

Intensive global competition, technical progress have caused an avalanche of changes in which conditions some firms have not survived. In this situation the future belongs to those managers who can better operate in conditions of changes, and thus they should be able to achieve fidelity of employees which make the work as if it is their own company.

The instruction, for efficient control of human resources

1. Accommodation of necessary people on corresponding workplaces.

2. Attraction in the organization of new workers.

3. Training workers to work new to them.

4. Improvement of quality of work of each employee.

5. Creation of conditions of creative cooperation and development of good relations between workers.

6. Interpretation of a policy and sequence of actions of the company.

7. The control of labour expenses.

8. Development of abilities of each person.

9. Creation and maintenance of moral atmosphere of a department.

10. Care of health and a physical condition of workers.

Managers of the personnel are an independent kind of professional experts, which overall objective is increase industrial, creative delivery and activity of the personnel; orientation to reduction of a share and number of industrial and administrative workers; development and realization of a policy of selection and arrangement of the personnel; development of rules of reception and dismissal of the personnel; the decision of the questions connected to training and improvement of professional skill of the personnel.

Functions of a personnel manager

The manager of the personnel carries out three next functions.

1. Linear function is a direction of action of people of a department and workers of sphere of service (such as factory cafeteria). In other words, they have linear powers inside a department of the personnel. Linear managers know, that director on the personnel has access to the top management on all questions connected to the personnel. In result “offer” of director on the personnel very often is considered as the order from above. These powers frequently have the big weight at overcoming difficulties with which chiefs face at the decision of the problems connected to the personnel.

2. Coordination function is coordination of actions of the personnel which is called the functional control.

3. Personnel functions – service of linear managers. These functions are “daily bread” for the manager of the personnel and consist, for example, in the help at hiring, training, an estimation, compensation, discussion, promotion and dismissal of workers. It also the control of performance of various programs of privileges (insurance of health and upon accidents, dismissal, holidays, etc.), the help to linear managers in their attempts to follow laws on equal employment and professional safety. The manager of the personnel also plays the important role in realization of the procedures connected to complaints and labour relations.

The systems of incentive pays

The wage system is constructed in such a manner that the fixed salary can grow only and practically never decrease.

The flexible wage system when the certain part of earnings is put in dependence on general efficiency of work, provides an opportunity to avoid dismissals and single reductions of the base salary and to raise labour productivity.

The basic kinds of an additional payment:

1. Premiums to a management personnel;

2. Compensatory payments at retirement;

3. Special premiums to managers without dependence from their successes;

4. At the constant size of the base salary the premiums dependent on the profit;

5. Surcharges for improvement of professional skill and the experience of work;

6. Payment without hourly rates;

7. Sale to workers of shares of the companies, etc.

Flexible wage systems are based on participation of workers in profits of firm or in distribution of incomes.

Bonus payments are received by each worker, but their level depends on results of activity of concrete division in which he works (a factory, industrial branch). At such system there is a close interrelation between results of work and the size of the premium at each worker. It is not simply new wage system, and the new approach to effectivization of work of each worker, increase of labour productivity, quality of production and to reduction of production costs.

Large American firms which had turned to on flexible system of payment, sometimes use simultaneously both systems: in the order firms or industrial branch system of a share in the profits; in the order factories, departments a distribution system of incomes.