Research Article
Trends in Human Resource Management: The Theoretical Aspect of the Study
Department of Economy, Sociology of Work and Human Resource Management, Altai State University, Russia, 61 Prospekt Lenina, Barnaul
In recent years, increasing use in optimizing the processes associated with human resources management in organizations is so-called out-technologies. Their application in the management staff of the organization due to the interaction with the external environment organization, using outside resources, the implementation of the necessary functions by outside organizations. Attention to these technologies in personnel management, on the one hand, due to the development of human capital theory, change the look of the creation and reproduction of human resources and their role in the production process. On the other hand, an increasingly growing trend of Conflict discrepancies existing personnel staffing demand in modern organizations. Originally built its policy on the acquisition or temporary functions of freelance organization eliminates the problems associated with the selection, adaptation, firing workers, labor disputes, etc. In addition, it acquires the ability to quickly and flexibly respond to both internal and to external changes.
DETERMINING PERSONNEL OUT-TECHNOLOGIES
In studies of domestic economists, personnel out-technologies are defined as a form of contingent employment, distinguishing between their two approachs: (1) Associated with the implementation of specialized functions, when outside the organization are not individuals and certain functions or business processes (Ashmarov, 2005) directly related to the provision of personnel (Kalashnikova and Topchii, 2008).
The first approach includes technologies such as outsourcing non-core activities, outsourcing intelligent business processes, radical outsourcing. The second approach consists outstaffing, staff leasing and the use of flexible (temporary) staff. Common to these personnel technologies is that workers engaged by the organization to perform certain functions to external state employees. Thus, all of which are connected with the borrowing of labour. As a brief aside, we note that agency work as a business practice originated in the U.S. in the 50-ies of the last century. The process of its formation is connected with the name of William Russell Kelly, the first founder of the company for the provision of temporary personnel.
OUTSOURCING
It literally means using external sources and is the involvement of third parties to perform certain types of work that are not relevant to this organization. The use of outsourcing is connected, primarily, with the optimization of business processes of the organization. They are usually not relevant for the company but necessary for its functioning which allows for individual researchers to consider outsourcing as a form of restructuring (Zhdanov, 2008). The use of outsourcing in personnel management due to a shift previously independently implemented by the organization functions in the sphere of labor relations external to the company-contractor (provider company which specializes in the implementation of such functions. So, outsourcing can be transferred personnel management, accounting, marketing, advertising, logistics, clearing, etc. Workers employed on the implementation of these business processes, will be involved in other companies (normally, specializing in the implementation of these business processes) and be external to the enterprise employees.
Canadian economist Cassidy (1994) denoted the main feature of outsourcing the transfer of the contract by the party introducing the term Contracting out. Haywood (2001) defined outsourcing as the translation of internal units or departments of the company and all related assets to the organization service provider, offering to provide a service within a certain period time at a specified price.
Widespread outsourcing due to division of labour which is an important principle of functioning effectively organized economic system.
It should be said that in Russia the basis of economic relations between different enterprises are the contractual relationship, the terms of which are agreed upon by the parties and allow for varying degrees of Freedom, such as: Cluster communications, outsourcing, subcontracting, franchising. When implemented in practice, there is a blending of their elements with the predominance of certain characteristic features. These characteristics help to differentiate a particular link type (Table 1).
There is also the term insourcing which is opposite to the outsourcing and represents the transfer of new functions that have not been used previously and is not inherent traditionally in an organization on the implementation of its internal divisions.
OUTSTAFFING
The concept of the next technology-outstaffing-grew out of the ideas of staff leasing which has been developed in the 1970s during the economic downturn. In Russia, demand for outstaffing arose after the 1998 crisis. This technology allows personnel to reduce administrative costs and risks associated with the companys personnel.
Using outstaffing can occur in two ways: (1) Attracting organization freelance specialist (freelancer), having relevant knowledge, skills and experience for the duration of a specific project (in this case outstaffing identified with rental staff), (2) Lead officer for the state organization and the design of its staff in the company's service provider (Employment Agency, Professional Employer Organization), while he continues to work at the same place and perform their former duties but the duties of the employer in relation to it already carries the company provider. Often in this case to determine the status of employees of the organization uses the term Agency workers.
Table 1: | Common and distinctive features of partnerships in Russia |
Business enjoys outstaffing-services in order to address the following issues:
• | Organization is important to have a representative in the region but there is no point in opening a branch or representative office |
• | It is necessary to increase the investment attractiveness of the organization |
• | The employee must arrange for a trial period to assess the results of his work for more than three months (which is limited to the period of probation, according to the Labour Code of the Russian Federation) |
• | Need to cut taxes and social contributions related to the calculation and payment of wages |
• | There is a need to optimize the activities of financial service and service personnel associated with the maintenance of personnel records, payroll |
• | To preserve the status of a small business or purchase last with all the attendant financial and tax benefits |
• | In case of the need to reduce the risks associated with the employment of persons who have no permanent residence in the area |
But the main value outstaffing as personnel services is that it allows us to give the necessary flexibility in personnel management and align the number of employees of the real volume of business.
According to experts, the market outstaffing the last three years has quadrupled, currently on the market share outstaffing staffing services is 20% which exceeds the outsourcing (15%) and leasing (15%) staff. The percentage of staff positions, output for the state is as follows: The 46%-administrative staff; 24%-financial position of middle managers; 14%-IT-specialists; 10%-top managers; 6%-workers.
Employment agencies offering outstaffing as staffing service can take on the following functions:
• | Calculation and payment of wages |
• | Calculation and payment of benefits for temporary incapacity for work and compensation for vacation, documenting business travel expenses |
• | Calculation and payment of income and social taxes |
• | Making necessary accounting reports and certificates |
• | All personnel procedures in accordance with the legislation |
• | Management of the compensation package for employees |
• | Termination of labour relations with an employee upon customer request |
Some researchers between outsourcing and outstaffing reveal tier connection. For example, Smirnych (2008) considers outstaffing as a kind of outsourced staff that, in our opinion, is quite logical, since companies are providers in relation to the organization of an external source of labor. Opinions that outstaffing is a logical continuation of outsourcing, ie its component also hold Komarova and Patutina (2010). Meanwhile, in the process of implementation of these two human technologies there are differences shown in the Fig. 1.
OUTPLACEMENT
Another term that is related to the solution of human problems in an organization, is outplacement. Also like the previous two technologies, it is associated with the release of the staff but unlike them not intended to replace regular employees of the organization to use the external labor.
In Russia outplacement appeared in late 1998, when the economic crisis led to massive layoffs of many companies. In this volatile economy technology outplacement as one of the types of services HR consulting with sufficient efficiency can be used by organizations for worthy layoffs.
Fig. 1: | Difference between outsourcing and outstaffing |
Currently the outplacement program is used in some cases:
• | When the mass reduction associated with reorganization processes in the company |
• | The need for complex legal, administrative or moral point of view dismissal of employees |
• | In the absence of stability in production |
Outplacement companies realized providers (recruitment agencies) and is associated with employment counseling and promotion of the labor market released by the organizations personnel, the provision of psychological, information and advice to dismissed employees. Therefore, along with outstaffing, outplacement should be considered as one of the areas of outsourcing.
The purpose of outplacement-to form a common understanding of the dismissed employee of the situation on the labor market in the region and advise him to conduct an effective way in the search for a new job.
In Russia the outplacement program can be divided into several stages.
Comprehensive assessment: Comprehensive assessment of the professional experience of the employee subject to release its compliance with the requirements of the labour market. At this stage, carry out consultation on career issues, including the assessment of the applicant and the development of an individual employment plan (defining the purpose of the employment preparation activities necessary to achieve the goal: Training and education, job search, study resources for employment, preparation to seek employment, the determination of preferences for employment and establishing the needs of the labour market), help in orientation in the labour market depending on the abilities of the applicant.
Preparing summaries and learning the art of self-presentation: A large percentage of candidates failed to qualify for the interview because of the inability to properly and competently prepare your resume and in the interview may not present itself. At this stage, the consultant assists in the preparation of resumes, then the chances of the applicant increases and also the candidate prepare for the interview.
Active promotion of the candidate: At this stage, the specialist outplacement help to put the data on the candidate in the Active list on the website, recruitment agencies, as well as send resume to employers with whom the agency does not have an agreement about the selection but that put ads on your fit. Active promotion of a candidate increases the chances of a recent search for a new job.
Psychological support: The news about the dismissal is always a lot of stress which can negatively affect a person. At this stage, the consultant recruitment agency providing psychological help. Thus, the discharged employee within the procedure of outplacement receives psychological, informational and consulting assistance. In turn, the organization maintains with many dismissed friendly relationship that can have a positive impact if necessary in the future to hire them again; the program also contributes to the preservation of a favorable psychological environment for the remaining workers, this does not compromise the productivity and saved the company image in the market.
This is important in view of dominance concept of corporate social responsibility.
Outplacement costs 5-10 times cheaper compensation for dismissal which can reach 4-6 wages. For organizations use technology outplacement favorable also because their former employees are guaranteed not to go to competitors: in 60-70% of cases with outplacement employers stipulate conditions with agents do not employ workers to their competitors. In addition, maintaining good relations, organizational management retains the ability to continue to resort to the help of his former employees, such as consultants or lobbyists (Ivanova, 2008).
To summarize, it was noted that in this study, not all technology personnel are considered but only those whose names begin with out. International and Russian experience of recent years shows that human-out with effective use of technology can be a very effective tool that brings mutual benefit and organizations (positive external and internal image, holding a flexible, market changes relevant personnel policy, improving the capacity of human resources; achieving economic efficiency by optimizing staffing levels) and employees. Knowledge of new technologies and market mechanisms-a prerequisite quality of todays professionals, therefore materials of this study can be used in the educational process.