You can manage anything - changes, garden, risks, gangs, transportation, quality and so on. People can be controlled too. That's just people - this is the most complex and volatile object of management. Human resource management is no longer dusty folders with ropes in rickety cabinets. The way people are affected is also changing. Try threatening a Gen Y hipster with a disciplinary action, or just say the magic words "you have to." And watch his reaction. Most likely, he will shrug his shoulders and leave. From the company.
Whips or gingerbread, guns or carrots? Or is it desirable all together and at the same time? We deal with administrative, economic and social methods of personnel management: what is the essence and what works best. All of them are directly related to the most important tools in the field of human resources - motivation and stimulation.
Administrative, economic and social methods of personnel management
First you need to figure out the right place for economic methods in a powerful block of chapters and sections on human resource management. It is among the three classic methods of personnel management, which differ from each other in the way they influence employees. The classification of personnel management methods into administrative, economic and psychological methods has existed for a long time. We will deal with this classification as follows:
- administrative methods - let's run through them easily and effortlessly;
- economics is our subject for detailed reading, stop here;
- Psychological methods of personnel management, often called social methods - we will go over them too.
Let's start with administrative methods.
Where's my black gun
Power, discipline, legal pen alties, reprimands. A stick instead of a carrot, a gun instead of a carrot. Let's add more associations: dust and naphthalene. Indeed, administrative methods, considered classics of communist education and management of the human masses, work worse and are used less often in most companies. Socio-economic methods of personnel management are used more and more widely today. There are only five administrative ways to influence unhappy employees:
Organizational influence with charters, orders, internal regulations that must be followed without fail. Suitable for army units with their military discipline. There are still enough companies with a cloud of disciplinary documents, but there are fewer of them, and employees obey orders more and more.
Descriptive influence is similar to organizational. There is a whole package of standard administrative documents:
- Orders are the toughest decisions from the boss, which must be followed without fail.
- Orders - such papers like to be issued by deputy heads. The recipient is usually a department, not the entire company.
- Instructions and guidelines are the most "calm" documents, usually issued by the personnel department.
Reprimands and disciplinary responsibility are the favorite topic of the battle-hardened old cadres. Discipline is a behavioral concept, it is mandatory for everyone to obey the rules established in a particular company. Another question is how expedient and strict these rules are. Any behavioral or ethical codes are extremely subtle tools for influencing people. They are essential, no doubt about it. Just like the socio-economic methods of personnel management, they need to be written carefully and taking into account the characteristics of the company's personnel: from age and specialized professions to the "geography" of the organization. Increasing Disciplinary Actions:
- remarks;
- reprimand;
- dismissal under article.
Liability is applied if the company suffered material damage. Rules and restrictions are well spelled out in the Labor Code (a property of all labor codes isthe most detailed description of punishments and pen alties of any kind, such is their nature of these codes).
Criminal liability comes into force when crimes are committed. This may be abuse of authority, arbitrariness, violation of labor laws in the form of, for example, forgery of documents.
Social or psychological methods
Depending on who the psychological impact is aimed at, the methods are divided into two groups:
- sociological, if the work is with a group of people;
- psychological if one person is affected.
Priority concepts and terms of this group of methods: cooperation, partnership, integration, preservation, etc. This group of methods pursues and fulfills the following goals:
- creation and support of a comfortable psychological environment in the team;
- formation of departments and divisions, taking into account the psychological interaction of employees;
- prevention and resolution of conflicts - industrial and interpersonal;
- formation and support of organizational and corporate culture with the definition of ideological attitudes and norms of corporate behavior.
There are a lot of ways of psychological influence: compliments, praise, suggestion, condemnation, inspiration, censure, hints and so on. Feedback from the boss is nothing more than a real psychological impact on the subordinate. These tools work great, they are a must-have.okay. Because psychological tools can work both ways - to bring significant benefits, as well as cause serious damage. Unlike administrative and economic methods of personnel management, this method requires knowledge and communication skills. Leaders who think about tomorrow learn and master them.
Economic methods
Economic methods of personnel management can also work in both directions - both encourage and punish. But the most valuable side of the method is its "encouraging" area. This is where you can roam - there is a huge space for competent and effective financial motivation.
In the departments of personnel management, new divisions appeared under the heading "compensation and benefits." Compensation and benefits specialists are highly valued in the labor market and are never out of a job. The most important economic method of personnel management is the general "economic umbrella" - universal technical and economic planning. This is the formation of a strategy, goals, objectives and plans for their implementation. Planning and distribution of resources, including financial resources, implies the successful implementation of all strategic goals, including the impact on employees using the economic methods of managing the organization's personnel.
Classification of economic methods
Economic methods of personnel management include a huge number of ways, a huge number, so at first they are divided into three large groups:
- Economic calculation (let this "Soviet" term does not mislead you, everything is in order here from the point of view of modernity). The essence of the method lies in the interest of employees to do as much as possible in order to share the net profit among themselves (everything that remains after subtracting all costs from total income). Naturally, such calculations require a high degree of team independence with clearly defined standards and self-sufficiency.
- Material incentives. The most "densely populated" group of economic methods of personnel management, the essence of which is the search for the optimal level of remuneration (these are the usual bonuses and salaries), benefits and compensation. At this very level, the interests of all parties converge: the workers themselves, their employers and the state as a social “auditor”. A three-way, mutually beneficial partnership is an absolute requirement for an effective financial incentive system.
- Sharing in a company's profits by buying its stocks or bonds (the ultimate dream of many young careerists, especially those in accounting, law and other consulting firms).
Her Majesty's salary
In the vast majority of cases, payroll (wage fund) is the largest expenditure item in the annual budgets of companies. The formal definition of wages from the Russian Labor Code is
Remuneration for work depending on the qualifications of the employee, the complexity, quantity and quality and conditions of the work performed, as well as paymentcompensatory and stimulating character.
There are two types of wages: basic and additional.
Basic salary is paid if the employee has fully worked the established working hours, most often it is an 8-hour working day or a 40-hour working week. The basic salary is calculated depending on which system the company has - piecework or hourly wages. For office employees with a fixed working day, the official salary is multiplied by the percentage of hours worked. There is another option, in which the daily salary is multiplied by the number of days worked per month.
Additional wages are charged for non-standard working conditions or employee qualifications. These may be co-payments or compensation for:
- work in hazardous production;
- irregular working days, overtime on weekends and holidays;
- additional workload and combination of duties;
- scientific degree, classiness.
Rewards for the final result - most often these are additional funds included in the payroll budget in advance with clearly defined options for achievements. Paid to a group of employees for specific achievements: increased productivity, cost savings, increased volume of products or services, received positive feedback from key customers, etc.
The bonus for the main results of labor is paid exactly for the same achievements as the remuneration. The only difference is thatfunds for this bonus are taken from profits, and not from the wage fund. Recently used rarely, as business owners prefer to pay the premium in any other way, minimizing profits.
Financial assistance - payments to employees upon their statements regarding unforeseen or extreme events: death of loved ones, accidents or treatment. One of the stereotypes is to think that financial assistance is paid only in trouble, it is also provided for positive events: weddings, the birth of a child, vacations to buy vouchers, the completion of creative work - a dissertation or a book. The peculiarity of such payments is their episodic nature.
Privileges and privileges
In essence, these are additions to all of the above methods of economic personnel management. They can be conditional, which include pension payments, insurance, payment of sick leaves. There have been some recent changes with sick leave: employees are increasingly choosing not to use this service, since the rates for paying sick days are in most cases extremely low (the exact amounts depend on companies that also prefer not to “motivate fans to get sick”).
Direct benefits include, for example, annual leave, which, according to its sources, does not belong to the classical salary, payments upon dismissal due to staff reduction, support for the children of employees in one form or another, loans and loans, membership contributions, vehicles, gasoline, corporatemeals, cell phones, and so on. With the help of benefits, companies achieve certain goals:
- increasing employee loy alty to the company;
- covering security needs is a powerful psychological factor;
- formation of the employer brand as a socially oriented company;
- tax optimization.
Sharing in company profits
The third subgroup of economic methods of personnel management, gaining more and more popularity and desirability among employees. Engaging in securities transactions that are in nature equivalent to ownership of a company.
Shares are the annual receipt of dividends as a share of profits as a result of the company's annual activities. By assigning shares to their employees, companies pursue and successfully achieve several goals:
- fixing the employee's right to own and receive part of the profit;
- getting extra pay;
- dependence of an employee on the quality of labor and products;
- building strong loy alty to the company.
Another form of securities - bonds, which also give the right to receive income at the end of the year in the form of an agreed fixed percentage. Bonds can be sold, in which case employees will receive financial compensation.
Examples of economic methods of personnel management
- One of the most popular examples is corporate canteens or employee discount sales.
- Interest-free loans (or with very low interest) to employees are common and work well: not only motivation plays a role, but the fact that in most cases a person will not quit until he pays the company's debt.
- Partial or full private he alth insurance.
- Corporate events that are now far from banquets with insane amounts of alcohol. It can be joint helicopter flights, skydiving, trips, excursions and so on.
Evaluation and conditions for high performance economic methods
- There is a concept of "money significance threshold" - the minimum amount of money below which payments cease to be significant for an employee. Small amounts for incentives are not uncommon and unpleasant mistakes of companies, when the total costs will be significant, but completely useless in their impact on people. The significance threshold is an individual value that depends on many factors. Knowing the average significance thresholds among employees of different categories is the direct responsibility of the HR department.
- Accounting for employees for whom non-financial incentives are much more important than financial ones. For example, the category of young mothers: they need a convenient flexible working day, which has nothing to do with the economic methods of personnel management. This does not mean that such mothers do not need to pay extra money, they just have a much higher threshold for the significance of money.
- Any incentive payments should be made under transparent and understandable evaluation systemswork and rewards. Each employee must not only understand why and for what he received a bonus at the end of the year, but also agree with the assessment and amount. This is the main condition for the success of any economic ways to stimulate employees, which is often neglected in companies. Ignoring communication activities reduces the effect of invested money by at least half. Full understanding, full agreement - only in such conditions it makes sense to spend considerable additional funds.
The effectiveness of personnel management is evaluated by two parameters - the economic and social components of work with employees. If social efficiency is assessed by the level of staff turnover, where the main figure is the turnover rate, then the methods for assessing the economic efficiency of personnel management are reduced to calculating the ratio of the average output of products / services per year to the average headcount. This ratio is called the average annual output per employee.
Administrative, economic and socio-psychological methods of personnel management exist and are used only for one thing - to achieve the company's strategic goals. The choice of one or another method depends on the company itself and the context of its business. One of the common options is a combination of administrative and economic methods of personnel management, which consists in backing up various monetary payments and pen alties with orders, codes and other corporate documents. It should be noted that all three methods of influencing personnel -a great space for personnel creativity and experiments in the best sense of these words.
If we talk about the general trends of today, then economic and socio-psychological methods of personnel management are more promising and rapidly developing ways.
