Table of Contents
Changes in the HR departments reflect a redefinition of the role and the place of man in the production that takes place in management in the era of scientific and technological revolution, the adoption of new theoretical concepts based on resource management, and, as a consequence, the introduction of a number of innovations in the forms and methods of personnel management. At the same time, for HR departments in many corporations, the change is not real. The concept and practice of human resource management formed for many decades in a virtually unlimited labor market, high staff turnover, and lack of commitment to employers who dismissed employees. The review of the human resource management system in China and American enterprises has shown that the most crucial problems in modern human resource management include the following: the lack of a mandatory human resource management system to promote the development of the company and achieve the company’s goals; neglect of the investment in human capital; unwillingness to update professional knowledge among managers of all levels; certification system is unscientific; and the fact that human resource system is flawed.
In international management, issues of corporate culture and human resource management are very important. As it is known, all key management personnel solutions are created with the help of effective culture. There are particular important features of HRM in an international environment as compared to the "home" approach to working with the staff. The major factors that influence the choice of a personnel policy and cultural aspects of management include location of the company and its subsidiaries; "basic" culture of the firm; the company’s industry; the size of the company; organizational form; competitive strategy; the nature of operations in the market; policies, rules, and procedures of the international firm; and others (Zhang & Jia, 2010).
The main categories that define the image of an international firm include business ethics and business etiquette that at first sight may not be directly associated with success in the sphere of international business. Ethics affect corporate culture and find the final form of rules and norms of business etiquette. Style corporations observe ethical standards that determine their reputation in the international environment, and this ultimately provides an effective and lasting solution to the firm concerning the adaptation to the external conditions. Possession of the mechanism of formation of ethical evolution in an organization becomes its major task and gives international managers the key to solving the problems of integrity and sustainability.
Success of commercial operations by international corporations depends on such circumstances as the availability of a technology, capital, and human resources. However, technology alone, technological know-how, and capital cannot be effectively and efficiently distributed or transferred from corporate headquarters to subsidiaries, unless the company has highly developed human resources. Management of these professionals and their development are the main objectives of human resource management on an international scale. Therefore, this problem is relevant for the development of market relations in China.
Human resource management issues are the subject of many scientific papers. Among them, it is worth noting basic research trends and control personnel, organizational behavior, industrial, and labor relations scholars such as Thomas J. Peters, Robert M., and others (Jos, 2006). With regard to modern scientific papers, studying the problems of human resource management is necessary, and works of Randall S. Schuler prove this (Festing, 2012). It is necessary to study the problems of human resource management in the international arena and develop proposals for the possible use of the results concerning China. At present, one of the major problems of human resource management in the international arena is the selection of staff, paying attention to technical skills of employees and without considering issues related to the ability of the selected staff to adapt to the foreign production environment. Some American multinationals’ failures related to this matter, particularly, when moving to other countries, are considered to be about 30-40%, while European, Japanese, and Australian multinational corporations face a much smaller number of failures of this kind (Marler, 2012). However, the wrong selection of employees responsible for the implementation of such programs not only leads to substantial loss of investment, but it can also result in the loss of human resources.
The Concept of Human Resource Management in the U.S.
In the 70s, the U.S. administration affirmed the concept of "human resources" and management instead of "personnel" and "personnel management" (Marler, 2012). Most firms also shifted from the traditional names in favor of human resource managers’ departments and introduced the new terminology in official documents. Today it is used as the planning of "human resources" and "the development of human resources." Changes reflect a redefinition of the role and the place of man in the production that takes place in management in the era of scientific and technological revolution, the adoption of new theoretical concepts based on resource management, and, as a consequence, the introduction of a number of innovations in the forms and methods of personnel management.
At the same time, for HR departments in many corporations, the change is not real. The concept and practice of human resource management formed for many decades in a virtually unlimited labor market, high staff turnover, and lack of commitment to employers who dismissed employees (by law, by agreement with the union or "voluntary" procedure). Accordingly, corporations sought to minimize the additional cost of the staff treated as a deduction from equity.
The idea of minimizing capital investments in hired labor was the basis of the principles of personnel management under the provisions of the school of "scientific management." The implementation of requirements, in particular, the design of jobs, reduced the dependence of production on labor performers. Splitting the process into simple, basic operations helped to minimize qualification requirements for operators and offered to use cheap unskilled labor. A rigid division of labor was carried out not only among operators, but also among performing work and labor management, and in functions and hierarchical levels of management. Representatives of the school of "scientific management," including F. Taylor, called for a more humane attitude to the labor force, but they were against the implementation of the fundamental principles of management in pursuit of profit.
An illustration of this can be the practice of hiring workers at the beginning of the century by "Ford." When new employees were hired, they were immediately put to their place at the conveyor, and their ability to work was determined. As soon as it was discovered that an employee was not able to maintain the required pace, which could happen in the first few weeks or days of work or later, they were fired. Then, a new employee was hired, and the cycle was repeated. This led to turnover in double digits, but this did not affect the economic situation of the company.
The school of "human relations" was not effective in meeting the goals of capitalist production. It could not back up the recommendations to humanize human resource management in profitability arguments (Festing, 2012). The suggestions for improvement with the staff were merely limited to negligible budgets or rejected by the HR services industry. Recommendations often covered only the trappings of the conditions of employment of workers.
Unlike the concept of "human resources," the concept of management of personnel, provided by the school of "scientific management" and "human relations," is the recognition of the economic feasibility of investments related to the involvement of the labor force, keeping it in working conditions, and even the creation of learning conditions to fully identify the opportunities and capabilities inherent in the individual.
The concept of human resources is, above all, a practical vision, which appeared in response to changes in the business environment of corporations in manufacturing, technical, social, and economic spheres. A manifestation of this change was an increase in the role of labor in production. The decisive factor of competitiveness in many sectors has been to ensure a skilled workforce (from senior management to operators), a high level of motivation, and organizational forms that determine the efficiency of the staff. American experts often refer to this factor in explaining the reasons for the success of Japanese monopolies.
One of the postulates of the theory of "human resources" is the applicability of value categories and estimates to the use of labor. Thus, on the one hand, the use of "human resources" is characterized by costs that employers have to pay, in addition to paid wages. These include the costs of personnel selection, their training, and social support. On the other hand, human resources are characterized by the ability to generate income at the disposal of the employer. It is the ability to determine the "value" aspect of the use of human resources. The amount of income depends on the individual performance, duration, and efficiency (Li, Lam, Sun & Liu, 2008).
In economic studies, American scientists have come to the conclusion that the growth of the gross national product of the United States in the postwar years was primarily related to the "factor of labor," to a lesser extent, to the so-called "factor of capital," while the "factor of the earth" almost did not participate in the process (Li, Lam, Sun & Liu, 2008).
The influence of the labor factor has two characteristics: quantitative-state (increase in the labor force) and modified as quality, in which the most noticeable impact is on the production of scientific and technological revolution.
Basic theoretical premise of the concept of human resources is to consider employees as a key resource of production without treating the labor force as free wealth, which does not require money and organizational effort on the part of the employer.
Until recently, in corporate governance practices, the HR function was the main one, which is understandable. For entrepreneur, it was much easier to find necessary personnel in the labor market than to get access to free funds in the capital market. The acquisition of new equipment cost the most money, and corporations created systems to ensure the maintenance of physical capital in a healthy state for a long time. Hiring a new employee is practically worthless, and care for the employee does not affect the assets and profits of the corporation.
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In the 60's, 70's, and the 80's, the pain-Shai part of large firms began to rebuild the work of personnel services (Dian-hua, 2007). They mastered the methods of recruitment of highly qualified managers and specialists directly in schools. Corporations increased the budget of personnel services for staff development. The major innovation in personnel work was the so-called "human resource planning." It included forecasting future needs, the development of equivalent circuits in group senior management, identification of missing "human resources", and planning activities that would promote their replenishment (Faping, 2009). Restructuring of personnel work began with managers and highly paid professionals. From the standpoint of the concept of "human resources," investment in the staff is the most justified.
Due to their competence and personal "interest in the company," senior managers have the greatest impact on the overall performance of a corporation. Therefore, personnel management, including the payment system, social insurance, and various benefits, geared to securing the top management of the company. Neglecting work with ordinary performers contributes to the high turnover of staff due to obsolete skills. The most significant changes occur in case of coaching skills and skills development. The total costs of all types of training for businesses have exceeded $ 30 billion a year. For example, in IBM and ATT, the costs have exceeded $ 750 million each (Min, Xiaoling & Yanyun, 2012).
An important starting point for the theory of "human resources" is the premise of the differences in the "value" of human resources. It is about the ability of an employee to bring up or down the surplus value in the company. The differences in the value are determined by individual differences in employees in the same position (Kam, Tsahuridu & Ming Juan, 2010). The findings were:
1. There is a dependence on the nature of monetary estimates in most positions (for example, the corresponding estimates for mid-level managers were 3 times higher than those for programmers).
2. In relative terms, the majority of occupations and positions have large differences in "individual values" of employees in the company (Xiaoya, Marler & Zhiyu, 2012). Deviations in both directions are from 40% to 70% of the salary. Difference value for a company’s best managers, as compared to an average one, was set at 30 thousand dollars
American scientists, sociologists, and economists note that at the present stage of scientific and technological revolution, there is a tendency towards allowing employees to influence the results of industrial and economic activity.
Computerization of today allows eliminating a number of intermediate links in its middle tier, especially those positions that are aimed mainly at controlling the aggregation of information. This increases the complexity and importance of decisions taken in the higher echelons; also, there are more additional powers delegated to middle and lower management levels. Many corporations have had the radical restructuring of the management at the bottom tier, especially in case of "self-managed work teams."
Staff training is seen as part of an "approach of human resources" and as a means of self-employment benefits. The approach to the work force as a resource means the appreciation of limited sources of certain categories of skilled professionals, managers, workers, as compared to the needs of production, which leads to competition for scarce and most important categories. The private capitalist economic system increases the gap between rapidly changing needs of production and the general level and nature of training workers.
In recent years, a large number of corporations that are interested in high quality human resources have made major efforts in research and development of new approaches to planning and management and new forms of governance. Thus, 16 of the largest corporations have jointly created the Association of Environmental Monitoring, which, according to the instructions of its funding corporations, examines the effects of new technology, government regulation, and environmental factors on human resource management (Ngo, Lau & Foley, 2008).
China is certainly a powerful country that is quite different from other countries due to the countless strategies that are actively developed and implemented by specialists in scientific management staff in shops and offices. In addition to the production and marketing areas, this country includes such units of social organization as family, school, and state. These units contribute to an effective use of human resources. At the same time, the staff management in China is a reflection of properties of the national character.
There is a simple list of attributes that shows what an impressive set of instruments and moral incentives the management of companies has:
a) some common traits include hard work, a highly developed aesthetic sense, love of nature, a commitment to the traditions, the propensity to borrow, and practicality;
b) the characteristics of group behavior are discipline, loyalty to authority, and a sense of duty;
c) some common everyday features are courtesy, punctuality, self-control, frugality, and curiosity.
The Chinese national character embodies a rare combination of continuity, stability, and consistency with tremendous adaptability to the most rapid changes in the external environment and with an incredible openness to any new ideas in all spheres of the material and spiritual life. Due to the mentioned qualities of the national character in the effective control of personnel, operation is reduced mainly to modeling relationships in the service environment, similar to the traditional Chinese clan that typically consists of several generations of one family. By introducing elements of family relations in the management, Chinese firms have created favorable conditions for the strengthening of labor discipline, improving interpersonal relationships, vertical and horizontal, and, ultimately, increasing the production efficiency. A crucial aspect of family relations, used in the control of personnel in order to maximize labor output, is that they form a dense network of vertical and horizontal commitments, which makes behavior of employees predictable.
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The negative effect of programmed commitments could be a challenge. The statutory obligation of the Chinese may not be noticed, but it is vital. This happens due to the fact that the Chinese act in accordance with the statuary obligation automatically, reacting in a particular way to a certain situation. Thus, it is easy to identify the conceptual framework of control over staff in China, which supports constant readiness of an individual to the strict implementation of commitments to senior, junior, and equal colleagues, and especially to the team. All components of the conceptual framework are aimed at strengthening the motivation to work.
One of the components of the conceptual framework for the control of personnel can be called total involvement. It comprises a number of statutes, confirming the paramount importance of the labor process in the eyes of the workers. Chinese workers are highly disciplined and follow a strict working schedule. Moreover, for their hard work, the Chinese are often compared with economic animals (Ngo, Lau & Foley, 2008). However, from the point of view of economic efficiency, the chosen mode of work and personnel management makes Chinese enterprises highly productive and profitable.
Another aspect of total involvement is that the brigade method of labor is dominant in Chinese enterprises (Xiuli, Juan & Xiaokun, 2009). Again, this shows a similarity to the way a Chinese clan functions. Dedication of the whole team in which it is impossible to trace features of every member is considered as the best means of achieving production goals. Being part of a brigade, employees feel as if they were part of a family, which encourages them to immediately mobilize all their strength and work hard. Also, they are afraid to show their incompetence or lack of diligence to their colleagues (Xiuli, Juan & Xiaokun, 2009). Their fears encourage Chinese employees to participate in the system of rotation, master their professional skills, and improve their knowledge, which definitely facilitates the production process.
A constant and deep concern for the interests of each employee forms the background against which Chinese companies promote labor competition. However, it must be emphasized that the purpose of the competition is not the fulfillment of the largest number of established tasks and their meticulous execution. It is necessary to point out the fact that the government of the country and many companies are focused on fostering innovation. One of the most successful solutions has been the adjustment programs. It is also necessary to note that innovative activities are aimed at improving the quality of products.
The second component of the conceptual framework for the control over personnel is trust (Warner, 2011). This concept is described by a strong belief of workers that any of their contribution to the success of the company, any sacrifices they make for the sake of the company’s prosperity will sooner or later, in one form or another, be rewarded.
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China has developed a widespread system of lifetime employment and seniority pay. The main role of the first motivation is to ensure stable employment, regardless of market fluctuations and other factors, while the aim of the second is to implement the guarantee fee that can increase longstanding dedication to the company. In the framework of the system of lifetime employment, there are skills that will help to adequately meet the requirements of the employing company, which is very important in China. Therefore, graduates have to get familiar with the mechanism of the rotation training for different types of professional profiles to identify their aptitudes and learn to work in team. Only after the training is completed will graduates be advised a particular job.
A more visual orientation to a particular employee pay system is believed to be created according to the superiority factor. On the one hand, the person who is involved in the lifetime employment must immediately put annual wage supplements on the escalator and its initial level provided that the fact that beginners are professionally unprepared is not considered. In other words, over time (its length depends on the rate of assimilation of production requirements), employees get paid regardless of their performance and achievements (Warner, 2011). On the other hand, the annual allowance is fixed by such factors as the accumulation of continuous service, experience, and quality of the worker.
The increase in the base rate based on the annual increases occurs at different stages of employment in different ways:
- to start a family (up to 30 years) - moderate upward curve;
- after getting married and having children (30-40 years) - a steep climb;
- when reaching adulthood (40-45 years) - again a moderately upward curve;
- in the pre-retirement period, the reference rate is almost not increased (Zheng, 2013).
Reliance on trust is not associated with a palpable risk for the administration, because it is imposed on the staff with the weight of the enormous moral obligation, and a carefree attitude is not tolerated. Carefully designed and flexibly implemented circulation methods of motivation in the majority of Chinese enterprises are believed to be able to increase productivity and ultimately improve the quality of sales and services that exist in the market.
The third component of the conceptual framework for the control over personnel is emotional intimacy. This term accurately reflects the nature of the statements by some theorists and practitioners of Chinese management regarding eradication of personal barriers within the workforce in order to protect it from the harmful effects of stress and conflict situations.
The factor of emotional intimacy within staff in Chinese firms is achieved by maintaining a very delicate balance between strict production discipline and open communication channels that connect the upper and lower classes. As demonstrated by the managers of various ranks, democratic Western observers often seem utterly false (Zheng, 2013). That impression, of course, is the result of an involuntary projection of the well-known Chinese model based on home experience and familial bonds.
At the beginning of participation of Chinese companies in management, it was decided to adopt clan practices in companies with their group orientation and systems of lifetime employment and seniority pay, and this is very important from the point of view of maximizing emotional intimacy and the traditional system of decision-making. This system is based on the circulation of a rough-draft decision, which may be requested by various representatives belonging to different company management layers. The main purpose of the project is to activate communication channels and gradually achieve universal agreement on the recommended solutions.
The clannish nature that is used in the majority of Chinese firms puts emphasis on the necessity and importance of staff management. Beyond that lies carefully conducted familiarization and advisory work with a large number of people, including representatives of the lower classes. As soon as the clannish nature is well-established, the responsible attitude of the Chinese to moral obligations ensures strict control over its implementation, which is more than making up for the time spent on the process of adoption, not spent in vain. What is more, it helps to create emotional intimacy. Control over personnel in Chinese companies is constantly and gradually modified.
According to the statistics, the actual use of foreign investment reached 116 billion dollars with the average annual growth of 9.2%, and the number of foreign companies in China rose to 348 thousand. Foreign capital in China is constantly increasing, and companies are looking for creative opportunities in order to promote cooperation in China (Kaifeng, Lepak, Jia & Baer, 2012). China has provided the world with a large market with a wide range of employment and personnel. Within 10 years, from 2002 to 2011, China shared the results of companies with foreign capital that gained certain benefits due to the prosperity of China (Ngo, Lau & Foley, 2008).
The Chinese market is the mechanism of growth for many foreign companies. Throughout 10 years, the volume of retail sales of consumer products in the market grew considerately to more than 18 trillion in 2011, as compared to 3,8 trillion Yuan in 2001, and it keeps on growing till now (Ngo, Lau & Foley, 2008). Currently, the number of countries and regions that are investing in China has exceeded 190, and the number of enterprises has increased from 480 most powerful ones that have made their investments in China to over 500.According to the study of Chinese-American Chamber of Commerce in Shanghai, 78% of companies in the U.S. capital in China have made a profit based on the operating income of their parent companies in the world (Kaifeng, Lepak, Jia & Baer, 2012). China has opened more than 100 departments of trade services and almost all structures of the production sphere. Senior officials of central and ministerial structures have stressed that enterprises established in a foreign capital are Chinese and that they must be treated the same way as the domestic ones. China has a huge number of strategies that are aimed at supporting and improving foreign investment. All of these measures prove the fact that China has become a place of attraction for foreign investments.
By 2011, the number of research centers based in foreign enterprises had reached more than 1,600 (Kaifeng, Lepak, Jia & Baer, 2012). China with each passing day is increasing the protection of intellectual property and respect for innovation; therefore, the country is gradually becoming an instrument of protection and assistance. Transforming management in China will provide new business opportunities for foreign companies. Moreover, the Chinese economy, which has been rapidly developing for 10 years, is currently undergoing a period of change in the structure and regulation of the model, has made use of foreign investment during the period of transformation.
From January to July this year, the proportion of the actual use of foreign currency by China fell to nearly 3.64%, which caused a large number of concerns and worries in the world. Transformations associated with the improvement of the structure and the improvement of quality will result in new growth of the market with certain fluctuations. China has the ability to expand the market and strengthen supporting industries. In the process of transformation of China, attracting investment becomes even more essential. A steadily growing volume of foreign investment in high technology is proved by the scale of investment in the industry that rose to 10 billion 890 million in 2011 from 7 billion 930 million dollars in 2002 (Ngo, Lau & Foley, 2008). The services sector became a new point of investment in 2011, and the share of foreign capital that was spent on services for the first time surpassed the one of the manufacturing industry. China became the second largest market for offshore outsourcing. The share of foreign investment rose from 3.8% in 2002 to 10% in 2011.
However, according to the European Chamber of Commerce in China, more than 20 percent of commercial and industrial enterprises in the EU intend to leave China (Zheng & Lamond, 2009). According to the publication, in the last two years, operating expenses of foreign firms in China "grew astronomically," including payment for rent, water, and electricity (Zheng & Lamond, 2009). Wages of employees increased from 250 to 400 Euros per month; at the same time, productivity remained the same.
The Chinese business environment that had been previously friendly to foreigners became significantly more rigid. Several years ago, for foreign businesses, special conditions were created including certain privileges and preferences. However, in 2008, foreign investors were deprived of their privileges and their status became equal to that of local ones (Zheng & Lamond, 2009). In addition, China is now experiencing a shortage of workers, and the government is going to increase salaries.
Secondly, the production in China is becoming more and more technological; as a result, requirements for employees are increasing. Skilled labor, of course, is not enough, because in China there is no adequate number of schools that can prepare the required number of professionals with necessary skills and experience so that they will be able to meet employers’ expectations and needs. It is believed that the more complex the production is, the more valuable professionals are. Presently, a much less number of people are looking for jobs, so employers increasingly have to make concessions and raise wages.
Thirdly, the government of China has set a course for the development of industries in all areas of the country, which has led to the fact that more and more companies are being built in central provinces. Now residents of the central provinces do not necessarily have to go to the south to work, so the likelihood of seasonal migration is significantly reduced. For corporations in the world, China was attractive, above all, because of the cheap labor and low cost of goods produced. It paid all the costs: low quality, transportation costs, loss of time due to transportation, and distribution of pirated products. Now everything is done to ensure that there are large benefits and privileges only for domestic enterprises and the costs remain the same.
According to the professor of Massachusetts Institute of Technology, David Levy, 14 percent of registered U.S. multinational companies have decided to transfer their business from China to the United States (Zheng & Lamond, 2009). Companies operating in the sphere of the light and textile industry are shifting their production to less developed countries in such regions as Vietnam, Cambodia, and Laos. All other more technologically developed manufacturing companies try to return business to their homeland. In particular, General Electric is going to move to the U.S. and establish there its home appliances; Adidas has started building factories in Vietnam and Indonesia. Moreover, U.S. experts estimate that the difference between products made in China and the United States equals to 10 percent, but it has been significantly reduced due to the constant growth of wages in China, while the level of labor productivity and wages remain the same in the U.S. In the end, it may be offset by the cost of transportation of the finished product.
Discussion and Conclusion
The review of the human resource management system in Chine has shown a number of crucial aspects that are certainly worth considering.
First of all, there is a lack of the human resource management system in private enterprise. Currently, most of the private enterprises in China have to establish the human resource management system provided that corporate entrepreneurship and talent development must go through the talent market.
Secondly, human resource management in the state-owned enterprise is believed to be not active. Chinese state-owned enterprises have great potential and human resource. There are two solutions that will help to solve the current problems. First of all, it is necessary to make full use of existing talents. Secondly, it is important to introduce more talents into state-owned enterprises in order to maintain their viability. Human resource management of state enterprises is relatively developed, but it does not promote the introduction and training mechanism. Relatively narrow channels of state-owned enterprises have to face the introduction of talent; also, human resource acquisition costs are quite high.
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What is more, foreign human resource management is sufficiently developed. The main human resource management system of foreign-funded enterprises followed abroad, which proved the fact that the excellent system is compatible with the actual situation in China. This means that foreign-funded enterprises created an important human resource training base.
The fourth aspect is the existence of non-enterprise organizations and a human resource gap. For the business community, human resources of the unincorporated organization system are very backward. Also, human resource management and human capital are often combined and accompanied with the lack of knowledge and rationality.
The most topical problems in modern human resource management include the following:
The lack of a mandatory human resource management system
Many institutions are trying to develop a variety of human resource management systems and attempt to successfully implement them. The Content Management System is based on a reward system, employee attendance, work rules, and wage distribution. It inspires enthusiasm and creativity among the staff members so that they will be eager to promote the development of the company and achieve the company’s goals.
Neglect of the investment in human capital
By the impact of the concept inherent in traditional enterprises, many enterprises in China that invest in human capital do not pay enough attention to training of various staff members, though talent is the most precious feature nowadays Thus, the notion of competition between enterprises has emerged in China. In particular, it is extremely noticeable in the international arena.
Unwillingness to update professional knowledge among managers of all levels
There are certain problems in the selection and training of management in a number of companies. This happens due to the fact that leaders of some companies are relatives of the shareholders and they might not have the appropriate knowledge, reputation, and skills On the other hand, some companies are better educated in the selection and management, and their lack of ability as managers is constantly analyzed and improved. It is believed that scientific management of enterprises, institutions, and companies and the selection and appointment system can result in huge losses. It is necessary to attempt to prepare leaders at all levels of business and management in order to adapt to the needs of the enterprise.
Certification system is unscientific
Analysis and evaluation of employees mainly refer to the comprehensive evaluation and thorough investigation of their results and performance, as well as their quality and capacity. Performance-based assessment is used in many enterprises in China. Due to the lack of knowledge and rationality and the inability to properly evaluate the situation, employees are often overestimated and made to perform wrong tasks. As a result, some of the set goals cannot be achieved, which has a negative impact on human resource management and operations in the company.
The human resource system is flawed
From the point of view of being people-oriented, many enterprises in China develop a human resource management system based on their specific characteristics and have a lack of human resource management, scientific and institutional. In addition, due to the fact that management of many companies is still stuck in the management stage, it is difficult to organize and facilitate its work.
Today, in the US, the use of labor has two trends. First of all, there is a desire to fully meet the needs of the corporation, which will help to gain an important competitive advantage. Industries that operate in to new fields of scientific and technological progress place much more demands on the quality of the staff involved. This strategy involves additional investment not only into training and development of the labor force, but also in the creation of necessary conditions. This, in turn, creates a firm commitment and reduces stress among employees in the firm. Hence, there is a tendency towards a significant expansion and restructuring of personnel work.
Finally, it is necessary to state that the concept of "human resources" uses economic arguments in favor of new approaches and the use of personnel and the need for capital investment in the development of human resources. This concept is changed and combined with the most archaic forms of human resource management and intensification of labor in those cases where the employer has to deal with surplus labor, low-skilled personnel or the appropriate economic environment. The presence of many examples of large long-term investments and huge corporations show that all organizational effort is related to the selection, training and development, and the creation of conditions for increasing productivity. This fact confirms the general rule that the personnel policies of corporations are determined by the economic evaluation and the expected outlays.