Main stages and trends of the development of personnel management theory

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Main stages and trends of the development of personnel management theory

Zaika Svitlana, PhD in Economics, Professor, Professor of the department of management, business and administration; Shaforenko Svyatoslav, Postgraduate of the State Biotechnological University

Summary

In today's fast-changing world, where the business environment undergoes constant transformations and technological progress determines new rules of the game, effective personnel management is a crucial link for achieving the company's strategic goals.

Simultaneously, the conditions of competition in the labor market are becoming increasingly complex, necessitating companies to manage personnel effectively in order to attract and retain highly qualified individuals. Changes in social and economic conditions, such as flexible work schedules and new requirements for employees' work-life balance, make it imperative to adapt HR strategies accordingly.

The growing importance of human capital is recognized as a key success factor, emphasizing the need for the continuous development of human resource management theory for the optimal use and development of the workforce. Therefore, studying the main stages and trends in this direction is important for creating strategies that meet the needs of modern business and ensure the sustainable development and competitiveness of enterprises.

The purpose of the study is to examine the main stages and trends in the development of personnel management theory and their impact on the effectiveness of personnel management in modern conditions. To achieve this goal, the following tasks were performed:

- study the main stages of the evolution of personnel management theory;

- analyze trends in the development of personnel management;

- determine prospects for the development of personnel management, taking into account dynamic changes and technological innovations.

To achieve these objectives, various research methods were employed, including the historical method to study the main stages of the development of personnel management theory, the system method for analyzing the main trends in its development, and the method of comparative analysis to compare different approaches to personnel management, among others.

The object of research is the process of developing the theory of personnel management, while the subject of the study is the main stages and trends in its development.

The results of the study have practical importance for personnel management specialists involved in the development and implementation of personnel policy. They will contribute to a better understanding of the laws and principles governing the development of personnel management theory and enable the application of its provisions in the practice of personnel management.

Key words: personnel management, personnel formation of enterprises, evolution of personnel management theory, personnel development, conceptual approaches in personnel management.

Анотація

Основні етапи та тенденції розвитку теорії управління персоналом

Заїка Світлана Олександрівна, кандидат економічних наук, професор, професор кафедри менеджменту, бізнесу і адміністрування; Шафоренко Святослав Юрійович, аспірант, Державного біотехнологічного університету

У динамічному бізнес-ландшафті сьогодення, що характеризується інноваційними трансформаціями, ефективне управління персоналом є однією з умов досягнення стратегічних цілей підприємства.

Нині умови конкуренції на ринку праці стають все більш складними, вимагаючи від підприємств ефективного управління персоналом для залучення та утримання висококваліфікованих кадрів. Зміни в соціальних та економічних умовах, такі як гнучкі робочі графіки та нові вимоги до балансу роботи та особистого життя працівників, роблять актуальною необхідність відповідної адаптації стратегій управління персоналом.

Визнання значущості людського капіталу як основи успіху, підкреслює необхідність постійного розвитку та вдосконалення теорії управління персоналом для оптимального використання потенціалу працівників. Отже, вивчення основних етапів та тенденцій у цьому напрямку є важливим для створення стратегій, які відповідають потребам сучасного бізнесу та забезпечують сталий розвиток і конкурентоспроможність підприємств.

Мета дослідження полягає у вивченні основних етапів і тенденцій розвитку теорії управління персоналом та їх впливу на ефективність управління персоналом у сучасних умовах.

Для досягнення поставленої мети виконувались наступні завдання:

- вивчити основні етапи еволюції теорії управління персоналом;

- проаналізувати тенденції розвитку управління персоналом;

- визначити перспективи розвитку управління персоналом з урахуванням динамічних змін та технологічних інновацій.

Для досягнення поставленої мети використані такі методи дослідження: історичний метод - для вивчення основних етапів розвитку теорії управління персоналом; системний метод - для аналізу основних тенденцій розвитку теорії управління персоналом; метод порівняльного аналізу - для порівняння різних підходів до управління персоналом та інші.

Об'єктом дослідження є процес розвитку теорії управління персоналом. Предметом дослідження - основні етапи та тенденції розвитку теорії управління персоналом.

Результати дослідження мають практичне значення для фахівців з управління персоналом, які займаються розробкою та реалізацією кадрової політики. Вони допоможуть краще зрозуміти закономірності та принципи розвитку теорії управління персоналом, а також використовувати її положення на практиці.

Ключові слова: управління персоналом, формування персоналу підприємств, еволюція теорії управління персоналом, розвиток персоналу, концептуальні підходи в управлінні персоналом.

Statement of the problem

The theory of personnel management is one of the most crucial branches of management science. It studies the patterns of formation, development, and effective utilization of the labor potential of enterprises. Knowledge of the theory of personnel management is necessary for the development and implementation of effective personnel policies and management practices in enterprises and organizations of any type and scale.

The relevance of studying the main stages and trends in the development of the theory of personnel management is due to several reasons:

-- firstly, personnel management is one of the most important functions of enterprise management. The success of the organization as a whole depends on the effectiveness of personnel management.

-- secondly, the theory of personnel management is constantly evolving, with new directions and approaches emerging. Therefore, it is crucial to understand the main stages and trends in the development of this theory to correctly apply its provisions in the practice of personnel management.

-- thirdly, the modern world is characterized by high rates of change, which affect all spheres of life, including personnel management. Therefore, understanding the current trends in the development of the theory of personnel management is essential for effectively managing it in changing conditions. Elucidating these issues will not only provide a better understanding of the essence of personnel management tasks in the current economic conditions but will also guide further research toward finding practical and innovative solutions to solve these problems.

Analysis of recent research and publications

Issues of personnel development are reflected in the works of many foreign and Ukrainian scientists, including Armstrong M. [2], Fayol N. [4; 5], Maslow A. [7], Mayo E. [8], McGregor D. [9], Gugul O.Ya. [15], Karminska-Belobrova M.V. [17], Kulyk Y.O., Chen N.O. [20], Lozinsky I.E., Eliseeva L.O. [21], Markova N.S. [23], and many others. They laid the foundation for management actions and decisions in accordance with the circumstances that existed in society at the time of their formation.

The works of scientists such as Klimchuk A.O. are dedicated to the study of the evolution of the theory of personnel management [18], Kostunets T.A., Korniychuk A.M. [19], Nazarova G.V., Laptev V.I. [24], Sytnyk Y.S. [27], Ivanova N.S. [28], Ustilovska A.S., Shcherbakov G.K. [29], and others. However, despite the significant number of scientific works, the stages and trends of the development of the theory of personnel management require further elaboration.

The purpose of the article. The purpose of the study is to study the main stages and trends in the development of the theory of personnel management, and their impact on the effectiveness of personnel management in modern conditions.

Presentation of the main research material

In today's world, the competitiveness of a business significantly depends on the company's personnel. The constant growth of enterprises' needs for new competencies, abilities, and skills determines the increased interest of top management in new scientific developments in the field of personnel management. They also show interest in developing new forms of stimulation and motivation for employees. After all, the main goal of personnel management is to contribute to the enterprise's profit, achieved through the provision of highly qualified and motivated employees, the effective use of their skills and creative abilities, as well as satisfying the social needs of employees in the workplace, such as job satisfaction, self-expression, and favorable interpersonal relations.

Personnel management, as a phenomenon, arose in the early stages of the development of human society. The first representatives of humanity, united in tribal communities, were forced to solve the task of using their own limited physical and intellectual resources. For this, they employed personnel management methods such as the division of labor, labor motivation, and discipline.

In the Middle Ages, most organizations utilized the labor of a very small number of people. In this regard, personnel management was one of the areas of activity for the manager, who most often was also the owner. He made decisions about his employees, including hiring, firing, pay, training, etc.

The medieval period illustrates examples of early forms of personnel management, such as:

— planning and development of a professional career: In Western European workshops, there was a clear internal hierarchy, and the criteria for promotion within this hierarchy were developed in detail.

— stimulation of work: Already in the Middle Ages, there were the first plans for the participation of hired workers in the profit.

— professional development: Shop schools and the apprenticeship system provided professional training for workers.

In the modern era, significant changes took place in the organization of production, leading to the development of personnel management. The increase in the scale of production, the complication of technological processes, as well as the development of management theory, required a more professional approach to personnel management.

During the period of industrialization, representatives of various schools in the 17th century considered personnel as the main producer of useful labor. According to the ideas of representatives of the English school of classical economics, labor power, represented by people, was considered a means of production similar to equipment. Labor power was recognized as an important element of the production process, built on unequal relations between the capitalist employer and employees.

In the era of Enlightenment, the outstanding classic of political economy, Adam Smith, made a significant contribution to the development of the theory of personnel management. Within the framework of the labor theory of value, Smith defined a person as an object of study, arguing that the value of a commodity is determined by the labor of the workers who produce it. In his writings, the scientist noted that the general development of the individual and his mental abilities is formed through daily work, and the increase in labor productivity is achieved by limiting the functional sphere of activity of a particular employee [10].

Scientific approaches to personnel management in the context of industrial relations have their origins in the classical school. A significant influence on the emergence of this direction took place during the transition from manual labor to the era of machine production. The need to streamline and standardize processes created a need for new strategies to rationalize production, leading to the separation of mechanical and managerial work.

Frederick Taylor [11], Henri Fayol [4], and Max Weber [14] were prominent figures of this period whose works deserve attention. Taylor's main concept was to consider management as a system based on specific scientific principles. According to his views, effective management required the use of specially developed methods and targeted activities. The main task of the manager at that time was strict control and monitoring of subordinates.

Taylor formulated the key principles of management, which included the study of each individual process, the selection and training of employees to perform specific operations, providing them with the necessary resources, and the systematic use of incentive methods. Taylor also noted planning as a separate stage of the management process and supported the idea of considering management as an independent field of activity. His theoretical assets showed themselves in practice, leading to a significant increase in labor productivity. It was assumed that implementing this concept could avoid the influence of subjective factors on the quality of technological processes. The division of technological processes into separate local operations made it possible to use low-skilled workers for minimal pay.

At the same time, the authors of the school of scientific management did not reject the need to stimulate personnel to increase production volumes and overall labor productivity in the organization. To achieve this, a system of incentives was implemented, built on the normative principle of personnel support. The importance of selecting employees based on physical and intellectual characteristics in accordance with the characteristics of labor activity was also recognized.

Harrington Emerson, an American mechanical engineer, was one of the founders of scientific management. His scientific works had a significant impact on the development of management theory and practice. H. Emerson expressed the need to implement the position of personnel manager in organizations, as outlined in his “Twenty Principles of Productivity” [3]. G. Emerson noted that for successful production, it is necessary to have specialists with intuition, observation, and knowledge in the fields of physiology, psychology, and anthropology. Such a specialist is capable of providing competent advice to the administration and the job candidate, determining whether the candidate is suitable for the given position.

Followers of the school of scientific management, American management consultants Frank and Lillian Gilbert, made a significant contribution to the theory of personnel management by investigating problems related to labor optimization, performance measurement, and the selection and placement of personnel. They were among the first to apply scientific research methods to the study of labor processes. Their research contributed to the development of new methods of work organization, enabling increased labor productivity and reduced time loss [6].

The further development of the theory of personnel management within the framework of management science is associated with the famous scientist Henri Fayol, who studied the problems of creating a rational organizational structure and an appropriate personnel management system within the mechanistic model. He formulated 14 principles of effective organizational management, including the division of labor, power and responsibility, discipline, unity of leadership, subordination of private interests to the general good, fair compensation, centralization, scalar chain of command, order, justice, initiative, and corporate spirit [5]. Clearly, many of these principles directly apply to the organization's personnel.

After understanding the need for personnel management and using scientific approaches for it, the concept of an ideal bureaucracy emerges. One of the prominent representatives of this approach is Max Weber. The main idea of this model is formal organization.

The emergence of this school is connected with economic prerequisites, particularly with the development of capitalism, the growth of mass and routine processes, and the complication and acceleration of emerging social and economic changes, necessitating quick solutions. All of this led to the emergence of bureaucracy as the highest form of rationalization of economic and social processes.

Max Weber's bureaucratic model is distinguished by several features. First, the system operates according to a rigid set of rules and laws. Additionally, it has a hierarchical structure in the distribution of power, based on the clearest division of responsibilities among all members of the organization, where the role of each is limited by its place in the structure. The classic bureaucratic model also requires maximum simplification and standardization from management [12].

In general, the bureaucratic model highlighted by the classical school assumes the following:

— problems and tasks of the enterprise are divided into specialized functions;

— each person focuses only on the performance of their work and does not take into account the general goals of the enterprise;

— coordinators are used to coordinate tasks of subordinates and assess their compliance with common goals;

— the methods, rights, and duties of each position are clearly defined;

— vertical interaction up and down the hierarchy dominates;

— work and its performance are regulated by rules.

At the end of the 19th and the beginning of the 20th centuries, according to the ideas of the representatives of that time, labor power was considered the main means of production. It is during this period that the first attempts to study the psychological characteristics of the behavior of people (personnel) in the process of labor activity arose.

Classical schools of management, which emphasized the standardization and regulation of production processes, ignored the direct influence on man, even to the extent that, in some cases, it led to the suppression of his interests. The gradual transition from the idea of the organization as a set of production processes to the concept of the organization as a social system led to the development of management thought in the context of personnel management. In the field of personnel management, the emphasis shifted from task performance to relationships between people, which are a key distinguishing feature of the “human relations” theory, the next stage in the development of personnel science. The theory of human relations is a direction of management where representatives recommended paying attention to effective interactions on the part of direct managers, implementing consultations with employees, and giving them the opportunity to communicate more at work. The school is based on the idea that people have a desire to be useful and important, and they want to feel part of the organization and society. These needs are recognized as more important than material incentives to work.

One of the founders of the school of human relations in management was Elton Mayo. His scientific works made a significant contribution to the understanding of human behavior in organizations and the development of effective management methods. His book “Human Problems of Industrial Civilization” [8] is a fundamental work of the school of human relations. In it, Mayo substantiates his theory that labor productivity depends not only on economic factors but also on social and psychological factors. Developing the theory of “human relations”, he set the following goals: increasing the level of employee motivation, psychological preparation for the introduction of innovations, improving the quality of organizational and managerial decisions, developing cooperation among employees and their work morale, promoting the personal development of the employee. In his subsequent works, E. Mayo formulated the principle according to which labor productivity depends on the relationships between team members, and for the first time put forward the idea of the possibility of creating a science of people management based on the achievements of psychology and sociology.

A new stage in the development of managerial scientific thought was the school of leading research in the field of human resources, which used a humanistic approach to personnel management. The main motivator for the emergence of innovations in this direction was the need to further increase the efficiency of the organization by improving the quality of its human resources. Accordingly, increasing the effectiveness of the organization's management is achieved through managing the behavior of employees, creating conditions for their social interaction, promoting communication in the organization, and formalizing its structure. Among the most interesting works on the theory of human resources, the works of D. McGregor [9] and A. Maslow [7] can be singled out.

The American scientist Douglas McGregor formulated the main assumptions that illuminate the mechanisms of employee behavior in the context of two opposing theories -- X and Y. He argued that all previous concepts of management, including the “human relations” school, are variations of theory X. According to the latter, a person does not expend energy on work and avoids it if possible. D. McGregor considered theory Y to be a more effective management system aimed at activating the intellectual, volitional, and emotional qualities of personnel. Contrary to theory X, which claimed that work is not natural for a person, theory Y was based on the idea that spending moral and physical effort on work is as natural as resting or playing.

American psychologist A. Maslow proposed the theory of human needs. He divided needs into primary and secondary. Primary needs are related to physical existence and safety. Secondary needs are associated with social, emotional, and spiritual aspects of human life [7]. This theory is important for personnel management as it allows understanding the motivation of employees and developing effective programs to meet their needs.

Further research in the field of organizational management identified the main methodological approaches to the implementation of the function of personnel management. In particular, this covers the process approach that emerged in the late 1950s, the systems approach that became relevant from the mid-1970s, and the situational approach that began to develop in the 1980s.

Within the specified approaches, a number of other methodological approaches can be identified, which specify and detail the theoretical basic principles of the formation of the personnel management system. These approaches include system-situational, dynamic, process-situational, and others. It is obvious that in the conditions of practical management, it is impossible to choose one single approach or model of management, since organizational management must take into account the peculiarities of personnel and technologies in the enterprise.

In particular, the ideas of C. Argyris and D. Schpn are important for understanding how organizations can learn and develop. Their scientific work has influenced the development of many fields of knowledge and continues to influence the way people think about management and organization [1].

Michael Armstrong, a British professor of management, one of the most famous theorists of human resource management, defined human resource management as a strategic and logically consistent approach to managing the most valuable asset of the enterprise: the people working there, who collectively and individually contribute to solving the enterprise's tasks [2].

According to Armstrong, human resource management is characterized by the following main features:

— a strategic approach: Human resources management is part of the overall strategy of the enterprise. It is aimed at achieving the goals of the organization, and not just at solving personnel problems.

— logical sequence: Human resources management is a complex system of interrelated measures. Each event should be aimed at achieving the general goals of the organization.

— involvement of employees: Human resource management involves the participation of employees in the management process. Employees must understand the goals of the organization and participate in their achievement.

— integration of management: Human resources management is part of the overall management system of the organization. It must be integrated with other management functions such as production, marketing, and finance.

In the 1980s, an increase in the role of organizational culture as an effective personnel management tool was observed. In the 1990s, a new approach to human resource management began. Instead of focusing on specific people, their activities, and processes, management began to focus on organizational cultures of various types.

The development of conceptual approaches in personnel management is presented in detail in the scientific work of N.S. Ivanova (Table 1) [28].

Summarizing the above information, it is possible to highlight the following most important stages of development of scientific schools of personnel management (Fig. 1).

The development of scientific schools of personnel management contributed, in turn, to the transformation of the content of personnel management concepts (Fig. 2).

Today, human resource management includes not only regulating the behavior of people, groups, and relationships in an enterprise but also pays attention to individual aspects such as the influence of leadership, the nature of power, interpersonal relationships, and the management of information flows. The main emphasis of scientific approaches shifts from management control functions to multifaceted management of human resources in order to achieve management efficiency in the enterprise.

At the same time, the effectiveness of personnel management requires consideration of the growing role of the intellectual component as a determining competitive advantage of enterprises, which directly depends on the developed concept of intellectualization of enterprise management systems [26]. The goal of intellectualization of management systems is determined by the strategic priorities of the enterprise, such as ensuring competitiveness in the market, dynamic adaptation to changing external conditions based on the creation of a favorable internal environment for the development of intellectual potential, and the effective use of components of intellectual capital: consumer, human, and organizational [13].

Table 1. Evolution of conceptual approaches in personnel management: [28]

Time period	Main issues of management	Management's attitude towards employees	Personnel management activities
Before 1890	Production technologies	Indifference to disadvantages	Creation of a system of disciplinary influence
1891-1910	Social security of employees	Creation of safe working conditions and opportunities for growth for employees	Development of the labor safety program
1911-1920	Task efficiency	Ensuring high wages for employees on the condition of increasing labor productivity	Study of labor movements during work and time spent
1921-1930	Individual differences	Consideration of individual differences of employees	Psychological testing and counseling for employees
1931-1940	Trade union movement	The opportunity to officially express your opinion in opposition to the opinion of the administration	Creation of employee and trade union communication programs
1941-1950	Social security	Social protection of employees	Development of programs for pension provision, health care, etc.
1951-1960	Participation of employees in enterprise management	Employees need their opinion taken into account in management	Professional training of managers
1961-1970	Complicity	Participation of employees in decision-making	Use of collective management techniques
1971-1980	Difficulty of the task	Improving the content of work aimed at solving complex problems	Enrichment of work elements, review of job duties
1981-1990	Transfer of employees	Retraining and advanced training of employees in accordance with the market situation and NTP	Anticipatory and continuous training of employees
1991-2000	Changes in the composition of the workforce and its shortage	Increasing the mobility and flexibility of the workforce and forms of its use	Strategic planning, employee rights, professional training, flexible benefits system, computerization



Fig. 1. Stages of development of the theory of personnel management

Source: compiled by the author based on [24; 27]

Since specific functions of management characterize the management process and are implemented through general functions of management, the specific functions of intellectualization of management and personnel management systems include:

— management of knowledge, intellectual capital, resources, products, and intellectual activity.

— creation of intellectual infrastructure and management of its development.

— management of successive (meaningful) processes of intellectualization [16; 22].

Thus, the task of the process of intellectualization of management systems is the formation of a creative and socio-economic internal environment of the enterprise, in which, under the most favorable conditions for intellectually gifted people, successive transformations are carried out: “intellectual resources -> intellectual potential -> intellectual capital -> intellectual property”. At the same time, the personnel management process should be focused on the individual, addressing their financial, moral- psychological, and emotional-spiritual motivation, ensuring a fair distribution of the economic results of the enterprise [27].

Therefore, it can be concluded that the development of scientific personnel management schools during the entire period develops in an inextricable connection with the development of not only technological progress but also the social development of society, where man occupies a leading position. Today, the scientific community is united in the opinion that an effective personnel management system largely determines the efficiency of the enterprise.

Fig. 2. The evolution of the content of the theory of personnel management

Conclusions and prospects for further research

The evolution of the theory of personnel management took place in the context of the development of management science and changes in views on the role of personnel in the enterprise. In the early stages of the development of personnel management, emphasis was placed on the rationalization of production processes and the use of personnel as a resource to achieve the organization's economic goals. Gradually, scientists and practitioners came to understand that personnel are not just a resource but a valuable asset of the enterprise, on which its success depends.

In modern business conditions, personnel management is considered a complex system aimed at ensuring the effective use of the labor potential of enterprises. The main trends in the development of the theory of personnel management in modern conditions are:

— growing role of personnel in the enterprise: personnel is considered a key resource of the enterprise, on which its success depends;

— taking into account the individual needs of employees: personnel management is aimed at meeting the tadmdu needs оf employees, to their motivation and productivity;

— integration of personnel management functions: personnel management functions are considered a single system interconnected with other management functions;

— situational approach to personnel management: personnel management is carried out taking into account the specific conditions of the enterprise. Prospects for further research in the field of personnel management, in our opinion, are related to:

— a study of the impact of digitization on personnel management. Digital technologies, such as artificial intelligence, machine learning, blockchain, and others, are increasingly penetrating various spheres of activity, including personnel management. Digital technologies can be used to automate personnel magement processes, improve the efficiency of decision-making, ensure compliance with legal requirements, and other purposes;

— a study of the impact of changes in the working environment on personnel management. Changes in the working environment, such as the increase in employee mobility, the development of remote work, and changes in the requirements for employees, increasingly affect the effectiveness of personnel management.

The results of these studies will contribute to the further development of the theory and practice of personnel management, as well as increase its effectiveness.

personnel management innovation

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