In recent years, many heads of organizations have been revising their personnel policies and personnel management styles , whether it is personnel management in a small business or personnel management in a medium and large business. Previously, the main emphasis was placed on the technocratic approach to personnel management, but now personnel management in modern conditions is based on a humanistic approach. This is because the main emphasis has shifted from the actual production towards the team, since it is the employees, their professionalism, qualifications, and focus on fulfilling the assigned tasks, that directly affects the efficiency of the entire enterprise.
Classical methods of personnel management distinguish three types. Consider these methods of implementing managerial influences on staff in more detail.
- Economic methods are based on economic laws and operate on the principle of "carrot-stick". The effectiveness of these methods depends on the sophistication of the material compensation system, credit structure, ownership of the enterprise, etc. Economic calculation of the enterprise dictates the following conditions for proper management: self-financing, independence, self-sufficiency. Material incentive sets the level of material compensation for the work done. This includes statutory wages, compensation, bonuses, benefits. The employee’s remuneration consists of two parts: the first is paid at the cost of production (basic salary, additional salary, remuneration for the final result of the work), the second is paid at the expense of profit (bonus for basic labor results and material assistance). Each employee of the enterprise should have a clear idea of those guarantees, material benefits and privileges that are assigned to him in accordance with his position, high-quality performance of official duties, fulfillment of set plans, etc.
Personnel management in an enterprise may also include such a common economic method as securities. Purchased shares allow employees to make a profit in the form of dividends, make it depend on the results of labor and on the work of the organization. The bond guarantees a fixed annual income. Credit cards allow employees to pay for goods and services in a non-cash way.
- Personnel management in the enterprise, based on administrative and legal methods, is a system of administrative and legal penalties, discipline and unquestioning submission to higher management. Organizational influence is based on the use of internal regulatory documents, such as staffing, collective bargaining agreements, job descriptions, etc. Managerial influence is based on orders, directions, orders, memos, instructions, etc. Disciplinary liability (submission to the accepted rules of conduct of the organization), liability (compensation for damages), criminal liability and various types of penalties (remark, reprimand, dismissal) are other methods of effective influence on staff.
- Personnel management at the enterprise necessarily includes a third group of methods: socio-psychological. These methods are based on the laws of psychology and sociology. Personnel management using socio-psychological methods is based on the laws of uncertainty of response, inadequate display of a person by a person, the law on the splitting of the meaning of management information, the law of self-preservation, the law of compensation, etc. Sociological methods include social planning, personal qualities, partnership, competition, sociological research, morality etc.