Personnel policy and personnel strategy: concept, types and role in enterprise development

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Now the personnel management function is moving to a new qualitative level. Now the emphasis is not on the execution of direct instructions from line management, but on a holistic, independent, ordered system, which contributes to improving efficiency and achieving the goals of the organization. And this is where personnel policy and personnel strategy help.

General information

What matters? First of all, attention should be paid to such elements as personnel policy, strategies and planning. Let's see why.

1. Personnel policy. It depends on what kind of production personnel the organization needs. In addition, attention is paid to the work process, with the help of which the successful implementation of the strategic goals of the enterprise is planned. A universal concept of personnel policy has not been developed. Therefore, you can find slightly different interpretations of this phrase.
2. Personnel strategy. It defines the methods by whichnecessary personnel to be formed.
3. Personnel planning. This is the process of developing a set of measures through which the chosen policy will be implemented using the methods applied. Depending on the period for which the plan is being developed, long-term, medium-term and short-term are distinguished.

Thus, personnel policy and personnel strategy are a reflection of the task and purpose of the enterprise in the field of human resources. Quite common is the state of affairs when the attitudes of the owners (managers) of the enterprise have a direct influence on this. And already on their basis, rules for working with personnel are being developed. It should be noted that personnel policy can exist, even taking the form of unwritten rules. This contributes to the predictability and safety of workers, because in such cases, each employee knows what to expect from management.

What are the goals?

In short, there are two points:

1. Consultation of owners (managers). It is carried out in order to ensure the effective operation of the enterprise in the field of personnel policy. If necessary, they should be influenced to change their beliefs, as well as to more accurately formulate their own ideas.
2. Communicating to employees the accepted positions of management. This goal is achieved through the formalization of the principles of work, through meetings, internal means of communication.

There are a number of important points to consider. Namely:

1. Should be takenall constituent elements of wages (salaries, additional payments, allowances, bonuses, compensations) are taken into account.
2. It is necessary to take into account the cash costs for unworked time. Examples include rest during public holidays and annual leave.
3. It is necessary to take into account the cost of social programs, as well as the additional benefits provided to the employee. Examples include food, business travel and accommodation, corporate holiday expenses, utility room equipment, and so on.
4. Costs for the adaptation of workers should also be taken into account. During the period of entering a new position, labor productivity is low, and mentoring requires the time of an experienced employee to train a newcomer.
5. The cost of attracting employees is also taken into account. This may mean payment for agency services, spending on organizing contests, paying for advertisements in the media, and the like.
6. The organization of the workplace, as well as the creation of all the necessary conditions, also requires funds. Expenditure items are the purchase of overalls, equipment, tools, communication services, furniture.
7. The cost of leaving should also be taken into account.

Personnel policy and personnel strategy exist inseparably, both of these areas should be given the necessary attention.

About principles

All actions that are performed must obey a certain logic. And the personnel development strategy of the enterprise is no exception. Majorityexisting aspects and nuances were taken into account and formed in the form of a number of principles:

1. Strategic focus. This means that not only short-term effects should be taken into account, but also the long-term consequences to which the decisions made lead. So, very often what gives a quick, momentary result can lead to a devastating result after a long period of time. Therefore, it is necessary to coordinate current needs and long-term prospects. For example, strict management based on restrictions and fines ensures labor discipline, but leads to the suppression of initiative.
2. Complexity. Personnel policy and personnel strategy must be combined with other perspectives of the enterprise in such a way that the interaction leads to the desired result. That is, the personnel and their qualitative characteristics correspond to the willingness to pay for them, the enterprise development plan, the adopted promotion approach.
3. Systematic. If we talk about the problems of personnel policy, then the situation is common when management forgets that an integrated approach plays a significant role in personnel management. Because of this, patchwork changes do not provide the desired effect. Let's look at an example. The enterprise is changing the organizational structure in order to free the management from routine functions. The goal pursued is to enable entrepreneurial potential to be realized. But at the same time, managers are not evaluated for the presence of the necessary qualities, the system of their material incentives and training is not rebuilt. ATAs a result, a system that allows flexible adaptation to changes in the external environment does not appear. What matters here are all-encompassing changes.

And these are far from all the areas of personnel strategy that should be given attention.

What other principles are there?

The following follows from point 3:

1. Sequence. It is necessary to ensure that the methods of the personnel strategy do not contradict each other, that the accepted principles are strictly implemented in practice, and that there is an order for their implementation that allows to ensure the expected result.
2. Economic feasibility. It should be remembered that the primary task solved by the personnel management system is the most efficient use of the potential of both individual employees and the entire team. That is, it is necessary to realize the goals of the enterprise, ensuring the optimal ratio of the resources used and the result obtained.
3. Legality. Some managers believe that labor legislation does not apply to the responsible segment. So they can do whatever they want. And everything goes well until the moment when one person decides to defend his rights and interests and initiates the beginning of the inspection of the implementation of labor legislation by the regulatory authorities. In addition, working outside the legal field worsens the image of the employer, that is, reduces the chances of hiring and retaining professionals.
4. Flexibility. The ability to adapt to change is keybusiness characteristic. The main barrier in this case (as well as the factor of influence) is people, the existing human resources of the enterprise. It is on them that the flexibility of the workflow of the enterprise depends. Therefore, the objectives of the personnel strategy should include the provision of working conditions when it is possible to ensure the rapid introduction of innovations. However, the specific wording can be refined as new challenges emerge.
5. Scientific validity. When an enterprise's personnel policy is created, it is necessary to take into account not only existing professional experience, but also the results of ongoing research. This takes into account internal and external factors that affect the enterprise and its performance.

Let's take a closer look at item 5.

About external factors

These include:

1. The level of stability of the political and economic situation, quality and compliance with laws.
2. Potential fluctuations, as well as changes in demand for products created by the enterprise, increased competition in developed markets. For example, if it is expected to increase supply while maintaining demand, then you should increase the level of competence of your staff. This is done through continuous learning, skill development, skill development, performance improvement.
3. The power of trade union influence on company performance.
4. Conjuncture of the labor market. For example, poaching specialists.
5. Existing labor law requirements. First of all, it is necessary to pay attention to social protection and employmentpopulation.
6. The mentality of the workers in the region where the company is located. For example, if alcoholism is widespread among them, then this entails marriage, absenteeism, and the like. To avoid this, they can attract workers from the surrounding settlements or even regions, organizing all the necessary infrastructure, such as transportation or providing service housing.
7. State and local socio-economic development programs. This is mainly true for enterprises with state ownership.

About internal factors

These include:

1. Enterprise development strategy. For example, questions are being worked out about whether expansion is planned. In a positive case, it is necessary to decide whether it is possible to distribute new areas of work among already hired personnel or whether it is necessary to recruit people.
2. The specifics of the enterprise. This implies the functional and organizational structure, the form of management, the technologies used. So, research organizations differ in this regard from he alth care institutions, insurance companies.
3. The economic situation of the enterprise. Here, the focus is on financial opportunities and the level of costs. So, for example, in cases where wages (or part of it) depend on the profitability of the enterprise, then when profits fall, earnings will also decrease. To remedy the situation, strategies can be used to improve the system of job responsibilities and organizational structure, changepolicy of benefits and compensations, lowering the costs of maintaining jobs, changing the principles of recruitment (for example, towards better and higher-paid specialists).
4. Qualitative and quantitative characteristics of jobs. Examples include long shifts, night work, dangerous and harmful working conditions, significant demands on physical and mental effort, and the like.
5. Personnel potential. For example, if the average age of employees exceeds 50 years, but there are regular customers, then it would be advisable to attract young specialists.
6. Corporate culture of the organization.
7. Interests and personal characteristics of the owners and/or managers of the enterprise.

Selection

Perhaps this is the most important global aspect. This process can be carried out both on its own and with the involvement of a recruitment agency. When is it rational? If we are talking about a large enterprise that employs hundreds and thousands of people, then it is better to entrust their affairs and the search for new employees to specialists already working in it, who, knowing all the ins and outs, will be able to evaluate applicants for the position. But there are some nuances here - so, if we are talking about finding rare professionals, then here their efforts may turn out to be too little. Let's consider a small example. There is a recruitment agency in Moscow that specializes in finding scientists in the field of theoretical physics. They have developments, channels, connections, agreements. And there is conditionalprivate research institute of theoretical physics in the field of quantum mechanics. It can be problematic for scientists to select personnel on their own, because it is already difficult to find only a candidate for the required position. Then they turn to a recruitment agency in Moscow, which is already selecting all potential candidates.

Grouping employees

To provide an effective mechanism for personnel policy, employees can be divided depending on their importance and priority. This approach makes it possible to successfully use limited resources. Here is a small example:

1. Category number 1. These are the heads of key departments, on which the result depends. As an example - the director, deputies, head of the production department and so on.
2. Category 2. Professionals who shape the main result. As an example - highly qualified employees, technologists and so on.
3. Category 3. Employees who help group 2 achieve results. As an example - system administrators, equipment adjusters, secretaries and so on.
4. Category No. 4. Employees that do not directly affect the result. These are accountants, couriers, cleaners.

Based on the created classification, the distribution of resources with the highest return is carried out.

What are the types of HR strategies?

There are four basic patterns of behavior:

1. Cost minimization. This approach is used when working with goodsmass consumption, when workers do not need a high level of professionalism, and all attention is paid to quantitative indicators. If hiring the necessary specialists is extremely expensive, then constant training of employees is practiced so that they meet existing requirements.
2. Quality Improvement Strategy. It is focused on the offer of goods with specific properties that satisfy the consumer demand of the highest price segment. In this case, it is planned to focus on the selection of qualified employees, develop and implement motivation programs, change the efficiency of work according to group and individual criteria. Particular attention in this case is paid to the system of development and training, as well as the provision of job security.
3. Focus strategy. In this case, it is supposed to focus on certain market niches. For example - production for a certain group of the population.
4. Innovation strategy. It lies in the fact that the company focuses on constant innovation and systematically updates products and services. By producing new products, it gains a competitive advantage. It is formed due to quality characteristics / price and quick response to customer requests. Production flexibility plays an important role in this. This is ensured by the availability of reserve resources, including labor. The costs associated with their maintenance are paid off due to the rapid restructuring of production and the start of productionnew products in parallel with the main ones.

What else should be noted?

First of all, the training of personnel deserves attention. Continuous learning is the key to future success. Of course, to get an immediate effect from this is from the category of fantasy, but if you look at the medium and long term, then the assimilation of new knowledge, skills and abilities usually pays off handsomely. In this regard, training is unparalleled. But this is not the only way to seize the available opportunities and realize the potential. Another interesting point that deserves attention is personnel changes. Let's consider a small example. Let's say an employee is hired. He holds a certain position. At the same time, it turned out by chance that he has a rather significant talent in another area. And there, at the same time, there is a greater demand for specialists than in the current position. In this case, personnel changes are carried out, and the employee changes the department (division) of work.