Abstract

In modern economic conditions, strategic priority of the enterprise activity is effective strategy development of personnel management. The article introduces methodology of portfolio analysis and enterprise strategy formation of personnel management system, based on the GE/McKinsey model. The main results. To accomplish the task, methodological tools were modified, by adapting the coordinates of GE/McKinsey matrix: P (a measure of the public personnel policy attractiveness) and K (the competitiveness index of enterprise personnel management system). Each indicator is evaluated on several factors. So, the rating indicator of the public personnel policy attractiveness is a result of interaction of such factors as: quality of normative-legal acts, which regulate labor relations; level of social infrastructure of the country (region); level of social security and population protection (minimum salary range, pension, medical services, insurance etc.); effectiveness of state program of experts preparation; level of attracting investments in human resources development, personnel system and personnel management; working efficiency of employment institutions and labor unions. The rating indicator of the enterprise personnel management system competitiveness is the result of the interaction of such factors: effectiveness of the motivation and stimulation subsystem; effectiveness of the subsystems of selection, adaptation and personnel evaluation; level of organizational and working conditions, social infrastructure of the enterprise; level of socio-psychological climate in the team; corporate culture and company image; development level of training, promotion and staff development subsystem; development level of planning and personnel marketing subsystem. Important to notice, that this is not the final list of factors. It can be extended and/or modified due to management and experts opinions, depending also on the purpose of the study. The methodology provides the evaluation of the factors mentioned above by experts on a 100-point scale. In addition, weights are used to calculate values of indicators. To confirm consistency of experts’ opinions, we calculate the coefficient of concordance, which further were evaluated according to the Pearson criterion. Using the modified GE/McKinsey model in solving the problem has a number of advantages: nine sections-quadrants allow evaluating not only a high or low rate of state personnel policy development, high or low level of competitiveness of enterprise personnel management system, but also to measure an average position. In addition, this set of indicators allows overviewing of the position and development possibilities of the personnel management system in a more detailed way. The usage of a wide range of factors for the formation of a complex indicator provide the opportunity to assess the impact of each of them and, if necessary, develop more specific measures to correct and/or improve basic position. Moreover, it is the possibility to choose the factors for each of the defined indicators, taking into account the specific situation and the specifics of the company. “Bottlenecks” of the GE/McKinsey model usage is primarily connected with the appearance of difficulties and subjectivity in determining the significance of each factor and its estimation. However this disadvantage can be avoid by involving experts. Conclusions. So, the usage of a modified matrix GE/McKinsey model will allow managers of the enterprise reasonably (not intuitive) to formulate strategic recommendations of personnel management system development and its competitive advantages, which in return will give the opportunity to hold the position at labor market and improve the attractiveness and image of the company as an employer. It should be noticed that even a professionally made portfolio analysis, with formulation of the personnel management system development strategy requires certain modifications with taking into account functional specifics and the uniqueness of the company. Changes in state personnel policy are also the reason for adjusting the proposed methods of determining the development strategy of personnel management system based on the model GE/McKinsey. These study results can be implemented through modification of other matrix methods of strategic analysis, definition of advantages and disadvantages of their usage, their effectiveness etc. This will allow creating a specific model of strategy development of personnel management system with taking into account influence of internal and external factors and specifics of a particular industry.  

Keywords: human resources system, human resources strategy, portfolio analysis, GE/McKinsey model, matrix of strategic advice

JEL Classification: M12, L19.

Cite as: Bilorus, T. V. (2018). Development strategy formation of the personnel management system of the enterprise based on portfolio analysis. Marketing and Management of Innovations, 1, 184-195. https://doi.org/10.21272/mmi.2018.1-13

This work is licensed under a Creative Commons Attribution 4.0 International License

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