The Role of the Hr Department in Personnel Management

The efficient management of human resources has emerged as a crucial factor in determining the performance of organizations in the knowledge-driven economy of today. However, different organizations have different levels of success with these strategies. The difference lies in the paradigm adopted in the organization: personnel management or human resource management. The purpose and objectives of the article are to analyze the theoretical, methodological, organizational, structural, and value foundations of the role of the HR department in implementing HR management as a social management practice aimed at forming and developing the organization's human resources potential and transferring the organization to a development mode. The study is based on a theoretical analysis of scientific works related to personnel management in organizational management in the context of socio-economic transformation in Ukraine. The main focus is on the analysis of holistic and strategic approaches to human resources management, emphasizing talent management, organizational development, and a proactive role in shaping the workforce to solve business problems promptly. The general theoretical basis and methodological principles are determined taking into account the interdisciplinary nature of research in the field of sociology of management, management theory, and personnel management theory. The article, based on the application of elements of qualitative content analysis and narrative review, explores the features and vectors of transformation of the role and functions of the HR department in modern conditions. It is shown that in today’s fast-paced, talent-centric market, organizations must regularly evaluate and enhance their HR policies and best practices to stay competitive, and the points of attention today should include providing the role of personnel departments in value creation and knowledge sharing, which ultimately leads to the company’s high performance and competitiveness. It is found that human resource management has undergone transformational change, reflecting changing organizational priorities and the recognition of employees as vital assets that contribute to business success. It is noted that human resource management recognizes the strategic importance of effective workforce management. Such changes have become a transitional step in understanding the evolution of personnel management from personnel management to strategic human capital management. The prospects of organizations depend on the actualization of internal resources and are not limited by financial and material capabilities. The foundation of modern economic knowledge is intellectual capital, the ability to form a management team, create a system of individual personnel management, and openness and innovation in management. Modern human resources management primarily involves the need to implement a holistic approach to employees with their needs and wishes, as well as a timely response to them by management.