Modern trends and trends in the development of personnel management as a leading function of organization management

The subject of the study is the theoretical and methodological basis of modern trends in personnel
management of the enterprise with the aim of optimizing them and correcting the development trend.

The purpose of the study is the systematic theoretical and practical substantiation of the
company’s personnel management processes and the optimization of the company’s costs, the
analysis of the processes of formation and use of human capital.
Research methods. The article uses general scientific and special research methods, while processing
and analyzing information traditional methods and techniques of economic analysis, planning and
forecasting (statistical, tabular, comparison, index, vertical, horizontal, modeling methods, etc.) were used.
Results of work. As a result of the conducted research, it was shown that every autonomous
independent organization in the field of economy, in order to survive and develop in the modern
competitive environment, must effectively manage its resources, in particular labor resources, that
is, produce goods and services that have a solvent demand on the market, improve their quality, to
diversify the range of goods and services, to reduce costs for the production of a unit of products, to
increase the production of goods and services and, ultimately, to obtain the highest possible profit
from their activities. The art of economic management consists mainly in the maximum satisfaction of
society’s needs in conditions of limited resources. Similarly, each enterprise satisfies its various needs
depending on the availability of money in the budget and the goods and services offered on the market,
their quality characteristics, prices and rates.
The efficiency of production is determined by the ratio between the result of activity at the output and
the aggregate costs at the input. The economic meaning of any production is to obtain income that
exceeds costs: the greater the difference between them, the better.
In the field of organization management, in particular in personnel management, the principle of
economic convenience and benefit should prevail. Each managerial decision should involve solving
a specific problem situation, obtaining a predetermined result. The effectiveness of personnel
management can be evaluated differently depending on the investigated aspect of effectiveness. The
method of expressing the result and costs will depend on this.
If it is necessary to study the dynamics of labor productivity, then the result of activity will be expressed by
the volume of products for the corresponding period, and the costs will be characterized by the total working
time spent on the production of a certain volume of products and services or the number of employees who
participated in production. If the costs are submitted in the form of the total used wage fund, then we will
have an indicator of the effectiveness of the current system of financial incentives for personnel.
Field of application of results. Economics and management of the national economy at the
macroeconomic and microeconomic levels, personnel management, labor resources management,
enterprise economics.
Conclusions. As a result of the research, taking into account a number of additional factors, for
the optimal assessment of the effectiveness of personnel management, it is necessary to analyze the
dynamics of the relationship between balance sheet profit and total labor costs, as well as how the
share of labor costs in the total set of production costs changes. If for several adjacent periods there
is a positive dynamic in the ratio of personnel, profits and labor costs, if the share of labor costs in the
total set of production costs increases, then this indicates the effectiveness of the labor income policy,
a good organization of labor costs.
Increase in overall productivity, labor productivity, profitability, increase in profit, fulfillment of product
or service release plans, increase in sales volumes – all these indicators reflect a high level of enterprise
management as a whole and, in particular, a high level of personnel management.
The level of social effectiveness of personnel management is characterized by indicators and criteria
that reflect various aspects of the attractiveness or unattractiveness of work in a given workforce,
people’s satisfaction or dissatisfaction with work.
Partial indicators of the social effectiveness of personnel management are: the dynamics of the
growth of the real wages of employees; employment guarantees for a long time (absence of the threat
of job loss); staff stability; the state of working conditions and cultural and household services at the
workplace; training and professional development opportunities; level of social insurance; Socio–psychological climate in structural divisions and the enterprise as a whole.
The general level of social effectiveness of personnel management can be assessed by indicators of
employee satisfaction with work, which is determined on the basis of specific sociological studies.
Personnel management as a function of enterprise management is a complex and multifaceted
process that takes place in time and space. If this process is managed by managers with a modern
understanding of the role and importance of the human factor, using the world experience accumulated
by many generations of scientists and practical managers, the company is guaranteed to have a
competitive staff. These personnel will not only successfully solve the current complex production
tasks, but will also be a reliable guarantee of the progressive development of the enterprise, despite all
external difficulties and threats.