Peculiarities of strategic management implementation of human resources at the enterprise
Makarenko Маryna V.,
Doctor of Economic Sciences
Phd in Economics
Azov Maritime Institute of the National Maritime Academy “Odessa Maritime Academy”
Makarenko M.V., Onishchenko V.V. Peculiarities of strategic management implementation of human resources at the enterprise. Management of Economy: Theory and Practice. Chumachenko’s Annals: collection of scientific papers / Institute of Industrial Economics of the NAS of Ukraine. Kyiv, 2019. P. 81-91. DOI: https://doi.org/10.37405/2221-1187.2019.81-91
The paper argues that reward systems provide incentives and reinforce workforce behaviors and facilitate the implementation of strategies, while development systems provide the workforce skills required to implement them. Emphasis is placed on the need to consider the performance measurement systems they use to gather the information needed to share rewards and identify development needs. The purpose of the work is to investigate the peculiarities of implementing a strategic human resource management based on the organization of an effective remuneration system. The object of the study is the strategic management of human resources. There are different approaches to measuring performance that help assess the extent to which employee behavior at all organizational levels contributes to the implementation of strategies. Measures for the effectiveness of such work are implemented by remuneration systems. All methods of measuring and evaluating performance are potentially useful tools for providing feedback on the extent to which behavior is consistent with organizational strategies. In addition, they are all potentially useful tools for informing the remuneration system about how much employees deserve higher compensation, recognition, and more. It should be emphasized that they are all potentially significant sources of guidance for future development efforts. The study uses system-structural analysis; systematic approach, systematization, abstract-logical approach – at generalization of results of research and formulation of conclusions. The role of reward and development systems in strategy implementation is substantiated.
The article points out that a number of assessment approaches have traditionally been used to measure performance. One of the most common is goal management, graphical rating scales, and stories. The most up-to-date performance appraisal systems are those that use the behavioral rating scale. The article discusses the goal-management approach that is widely applied to performance appraisal. In the case of goal management, it is easy to set strategy implementation, as goals can be defined as outcomes or milestones in the strategy implementation process. It is emphasized that goal management usually begins with the initial phase, in which the subordinate forms the goals or objectives to be achieved within the next period of time. As part of this process, the subordinate identifies the measures that will determine the achievement of such goals and outlines the plans of action he or she will use to achieve them. It is emphasized that, as with all approaches to performance evaluation, goal management has drawbacks. Goals for some jobs are harder to write, such as for staffing, and problems arise when goals are not well thought out. In addition, this process may be perceived with cynicism if senior executives are not evaluated by goal management.
The article describes the reward systems that are used by leading businesses: goal management, graphical rating scales, performance descriptions, behavioral ratings, behavioral observation scales, and 360-degree feedback systems. The lack of performance evaluation at the executive level is emphasized. Suggestions are made for the wider application of management evaluation. After discussing measuring the effectiveness of the system, rewards were considered in terms of compensation. Traditional work-based pay systems are described and their inability to provide the flexibility needed in today’s competitive environment is discussed. The importance of an appropriate system of rewards in the implementation of the human resources management strategy has been proved. Because of the critical role of compensation in several work systems, organizational processes, and organizational structures, several innovative approaches to compensation have been discussed. Because highly competitive human resources will be required to gain future competitive advantage, reconciling rewards with skills can be critical to successful strategy implementation. A new broadband compensation approach was also explored. They also discussed team remuneration, which rewards joint efforts, and discussed variable compensation. Variable compensation is becoming more widespread as it helps to create a sense of common purpose among all employees. Variable compensation can also help to secure employment. The role and current status of compensation to performers were also examined.
human resources, reward system, strategy implementation, goal management, rating scale.
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