This article tried to emphasize some aspects concerning the relation between economical increasing and investments in human resources. We proposed to study the correlation between economic performance and the application’s level of human resources management. The research was made on a number of firms from the West 5 Region. Supporting the role of investments in education and training, was sustained the idea of adapting the human resources to the structural changes of the economy imposed by the technical-scientific progress on efficiency criteria.human resource, economic growth, competitiveness

Duda-Daianu, Dana Codruta

Izvercianu, Monica

Staicu, Florentiu

English

Research Papers in Economics

  1 
ASPECTS REGARDING THE IMPORTANCE OF HUMAN RESOURCES FOR 
ECONOMIC GROWTH  
 
Codruta DUDA-DAIANU
1, Monica IZVERCIANU
2, Florentiu STAICU
3 
 
1. Assistant, Ph.D. ec., University Politehnica Timisoara, Romania 
2. Professor, Ph.D. eng., University Politehnica Timisoara, Romania 
3.Ph.D. eng, University Politehnica Timisoara, Romania 
 
 
This  article  tried  to  emphasize  some  aspects  concerning  the  relation  between  economical  increasing  and 
investments in human resources. We proposed to study the correlation between economic performance and the 
application’s level of human resources management. The research was made on a number of firms from the West 5 
Region. Supporting the role of investments in education and training, was sustained the idea of adapting the human 
resources  to the structural  changes of the economy  imposed by the technical-scientific progress on efficiency 
criteria.  
 
CRITERIAS USED FOR HUMAN RESOURCES EVALUATION 
 
  The  assessor  that  has  as  objective  the  estimation  of  organization’s  resources, 
including the human resource, will starts with the analysis of organizational and human 
structures, because the personnel together with enterprise’s market form the most important 
elements that determine the enterprises’ value. 
The organizational structures analysis begins with the organization chart, based on 
which were determined: 
￿  the hierarchical and functional relations 
￿  types and percents of hierarchical levels  
￿  actual situation of functions in proportion to the age  
￿  it was determined if the successions are well prepared and if there is the risk to 
appear a “gap” for the future years. 
Starting with the organization chart one can observe the rational way in which are 
distributed the management functions in enterprise and the manner in which the information 
circulates from a sample to another, even in vertical and horizontal plan. The assessor must 
observe if the instructions and the information move up and down easily (from hierarchical 
point of view), if there is communication between departments.   
From  the  action  plan  on  long  term  must  emerges  the  kind  of  administrative 
organizing  and  the  manner  of  decisions  taking,  and  also  the  existence  of  a  control 
mechanism.. 
The assessor must verify if the decisions are grounded, if they are framed in the 
budget, and delivered, realized, controlled and quantified in order to determine the deviation 
from the budgetary stipulations. 
Firm management must be evaluated regarding the performances and competences. 
If the firm has a performances evaluation system, it can be used for the evaluation. The 
assessor must to observe and to follow: 
￿  the  dependence  relations  of  leaders  in  rapport  with  a  group,  or  an  major 
shareholder,   2 
￿  the  managerial  style  (collegial,  authoritative,  on  objectives,  centralized, 
decentralized), 
￿  the age of the members from managing group, their formation, the ancientness in 
society 
￿  the decisions’ domains and the limits of the hierarchic control and commitment 
￿  the  relations  of  management  group’s  members  with  certain  economical-social 
environments (clients, suppliers, employees, banks), their image in the enterprise’s 
￿  internal and external environment  
￿  the stipulations of the collective work contract, if it is really respected, the measure 
in which it respects the law and effective decisions. 
By the stability indices one can determines the personnel fidelity and can chases 
the changes or succession possibilities in case that a person leave, or go in retrial. The 
assessor verifies the firm policy regarding the personnel recycle at all levels, fact that permit 
not only good performances for engaged post but even the possibility to promote in other 
functions. 
We want to analyze if the recruitment and the employment are followed by a period 
of preliminary orientation/qualification, the existence of a personnel surplus or insufficient 
personnel, the work’s productivity, the methodology for work’s standardization (security 
limits, the flexibility offered by diverse contracts’ types, assuring the number of post), the 
employees’  reputation  and  abilities (specific: technical  and  general  knowledge,  relations 
with customers, with employees, managerial native qualities, leadership). The assessor will 
observe the local, national and international reputation of human resources’ managers and 
generally of management staff. 
Generally, can be considered like strength aspects: 
￿  the great percent of young personnel  
￿  a rational organizational structure 
￿  the collegial type management 
￿  a good professional training for the firm’s employees 
￿  a  relaxed  atmosphere  and  the  absence  of  conflicts  and  litigations  between  the 
management and the union 
The  weaknesses  for  human  resources  domain  and  for  human  resources’ 
management can be, generally, considered: 
￿  the insufficient training of  personnel 
￿  the opposition to the innovation and to the new 
￿  an unbalanced organization chart 
￿  the lack of interest for the firm’s assets (active) 
￿  numerous and unsolved litigations 
￿  incapacity to solve the problems 
The evaluation of human resources management will cover the two components: its 
efficiency and its equity evaluation. 
 
 
 
   3 
THE LEVEL OF HUMAN RESOURCES’APPLICATION AND THE ECONOMIC 
PERFORMANCES OF 5
th WESTERN REGION 
 
The objectives of the research and the methodology used 
The research realized for 5
th Western Region aims at identifying the state of human 
resources’ management in order to grow human resources efficiency and competitiveness. 
For this purpose, we proposed four objectives: 
￿  The description of human resources management‘s practices applied inside the firms 
from 5
th Western Region and the identification of theirs application’s stage. 
￿  Identification of the problems which affect the firms’ management at the level of human 
resources’ administration. 
￿  Identification of strengths and weaknesses for the human resources’ domain, in this 
region  
￿  Analyzing  the  correlation  between  the  level  of  human  resources  management’s 
knowledge and using, on one hand and the economic performance, on the other hand.  
The  research  was  made  using  a  questionnaire  including  20  questions  regarding  the 
following aspects: 
￿  The identification data regarding each enterprise: information regarding the geographic 
area of the firm, the founding year of the firms, the number of employees, the economic 
performance. 
￿  The  definition  of  human  resources  management  given  inside  the  firms,  the 
characteristics and the responsibilities of human resources’ managers, the evaluation of the 
human resources management’s efficiency and equity. 
￿  The  identification  of  the  main  straights  and  weaknesses  in  the  process  of  human 
resources management application in the vision of the firms that participate at the research 
process. 
￿  The  evaluation  of  the  application  stage  for  human  resources  in  the  analyzed 
organizations (the evaluation was realized by the comparison between the current practices 
applied inside the firms with the ideal situation, respective the more achieved practices in 
the domain used at world level, using an evaluation scale referring to the measure in which 
exist a superposition between the reality and the ideal situation : 1=not at all; 2=in a small 
measure: 3= in a medium measure; 4=in a large measure, 5=in totality. On base of the points 
obtained, each firm was surrounded in a certain maturity degree in application of human 
resources  management,  respective:  the  bureaucratic  administration  of  the  personnel, 
strategic partner for the others departments and changes’ agent. 
The questionnaire was applied to general directors and to human resources’ managers 
from the 40 enterprises included in the sample, respective: 
a)  15 micro enterprises – being characterized by a number of maximum 9 employees 
and a net annual turn over of maximum 2 million euros, equivalent in lei, 
b)  12  small  enterprises  –  having  between  10  and  49  employees  and  realizing  an 
annual turn over of maximum 10 million euros, equivalent in lei, 
c)  10 medium enterprises – having between 50 and 249 employees and an annual net 
turn over of maximum 50 million euros, equivalent in lei,   4 
d)  3 big enterprises – having more than 250 employees and a net annual turn over 
grater than 50 millions euros. 
 
Research conclusions  
  Like  result  of  the  interview  made  to  the  managers  of  small,  medium  and  big 
enterprises from 5
th Western Region, we succeed to identify the following main problems 
regarding the domain of personnel administration, presented in the table no.1.  
Table no.1: Problems regarding the personnel administration identifying within the 
framework of the firms from 5
th Western Region. 
Enterprises that 
signalized the 
problem  
The nature of the 
identified problems  
 
No.  Percent 
Observation  
 
Absenteeism 
 
5  12,5 %  - medium and big enterprises, that have a 
great  number  of  employees  from  the 
limitrophe    localities,  having  cover  a 
great distances until the working place. 
 
Working tasks evasively 
defined  
 
15  37,5%  -small  and  micro  enterprises  –  like  a 
consequence  appear  the  difficulties  for 
the  employees  to  understand  theirs 
missions within the department. 
Difficulties in assuring 
the qualified working 
force  
20  50 %  -big  and  medium  enterprises  and  few 
small  enterprises  were  confronted  with 
this  increasing  problem,  being  more 
difficult to find qualified workers in the 
region.. 
 
The fluctuation of the 
personnel 
 
16  40%  -this problem is strongly correlated with 
those  anterior  mentioned,  the  qualified 
personnel  being  tempted  to  migrate 
through  the  firms  that  assure  the  better 
working  conditions  and  more  attractive 
salaries. This aspect can be the result of 
the  unknown  of  the  benefits  offered  by 
the  firm,  or  of  the  missing  regarding  a 
flexible information package. 
The lack of 
preoccupation  for the 
continuous professional 
preparation 
17  42,5%  -  small  and  medium  enterprises,  the 
employees have week performances, the 
lack of efficiency in accomplishment of 
theirs  obligations  presented  in  the  post 
card 
Inefficient 
communication between 
9  22,5%  -  wrong  decisions  regarding  the 
promotion,  the  defectively  ways  for   5 
the management of the 
firm and its employees 
 
deciding and announcing the promotions, 
inequities  regarding  the  allocation  of 
salaries’ increasing, the circulation of the 
messages/information  and  of  the 
documents inside the firms. 
 
The firms from 5
th Western Region were confronted with a lot of problems regarding 
the domain of human resources management: 
￿  From all questioned enterprises, only 15% succeeded  to give a correct definition of the 
human  resources  management,  of  its  importance  and  implication  like  function  for  the 
general activity of the firms. 
￿  The situation regarding the framing of the human resources department in the three 
evolution’s degree was the following: 
a)  bureaucratic administration of the personnel – 68% 
b)  strategic partner for the others departments – 22% 
c)  changes’ agent – 10% 
 
 
Fig.no.1: The framing for human resources’ department regarding the evolution’s degree 
for the firms from 5
th Western Region 
￿  The evaluation of human resources management doesn’t represent a preoccupation for 
the Romanian firms from 5
th Western Region. Only 15% of them have an ethical code, in 
which  are  detailed  the  values  and  the  principles  that  make  up  the  base  of  activities’ 
unfolding. 
  In the same time, were identified a correlation greater than 80% between the turn over 
and the profit rate, on a hand and development’s degree for human resources’ management. 
 
CONCLUSIONS AND PROPOSES 
This paper aims to pointing out the direct relation between the firms’ level of economic 
performances  and the  manner  in  which  were  administrated  the human  resources by  the 
degree of implementation and the quality of human resources. The evaluation of human 
resources can be realized at global level, for each activity and at level of instruments used. 
The assessors has the task to opt in accordance with the available resources regarding the 
goal of the analyze  
The research realize for the Western Romanian firms pointed out the fact the most firms 
were  confronted  with  problems  regarding the  working  force  and its  administration. The 
evaluation of human resources management represents an instrument for managers that want 
68%
22% 
10% 
bureaucratic administration 
 of the personnel  
  strategic partner for the 
others departments   
changes’ agent   6 
to help the organization in which they work for identifying and controlling the deficient 
domains. In the same time, it is an instrument for the assessors that try to determine the 
goodwill’s value of the enterprises, for including the working force in this evaluation in the 
form of  a no  corporal  active.  The  person that have  the greatest  win remain the human 
resources’  manager,  he  can  improve  himself  continuously  his  decisions  and  proceeded 
activities that were followed by the efficiency and equity’s point of view. 
In the context of the new changes in legislation regarding the work, the firms have to be 
more rigorous in the relations with its own employees, the new legislation in this domain 
imposing a high professionalism for the activities of the human resources’ domain. The 
emotional intelligence applied in the communication with the employees can be an efficient 
instrument  for  founding  solutions  to  prevent  and  resolve  theirs  dissatisfactions.  The 
preparing of a file for each employee was becoming a demanded in the conditions of the 
new  rules.  The  evaluation’s  activities  for  human  resources  management,  performances’ 
evaluation, the calculation of used instruments’ availability are utile devices for protecting 
the managers in the relations with theirs employees.   
Like proposes for increasing the efficiency of human resources in the region in view to 
respond  to  the  demanded  in  continuous  evolution  existed  on  the  working  market,  and 
implicitly, in view to contribute at the economic performances’ growth, we mention:  
￿  To adopt measures in view to convict the enterprises’ management regarding the 
importance of the continuous improvement of theirs employees, regarding the direct relation 
between  the  economic  performance  of  the  enterprises  and  the  degree  of  professional 
preparation of the human resources. For this, the enterprises would benefit better by the 
centers for continuous preparation existed in the region that offer trainings and perfecting 
courses for private medium of the region, for diverse domains, even by the services for 
professional formation and reconversion of the adults offered in the industrial zones being in 
the reorganization process.  
￿  The correlation of the learning process with the demand for specialists’ preparation, 
with abilities needed for the alignments of the European Union’s standards, respective the 
introduction  of  new  disciplines  in  the  educational  programs,  in  concordance  with  the 
demand  of  the  working  force  (courses,  masters,  specializations)  and  by  the  direct 
consultation with the business environment: the intensive application of the professional 
trainings  for  pupils  and  students,  in  the  region’s  enterprises,  the  development  of  the 
innovative and entrepreneurial spirit of the yang graduates and students by round tables with 
recognized investors from the region 
REFERENCES 
Becker, Gary: “Human capital. A theoretical and empirical analyze cu special references to the education” Edition 
All, Bucharest, 1997; 
Becker, Gary: “Human comportment. An economical approach”, Edition All, Bucharest, 1994 
Bowen, D.E., Lawer, E.E.: “Total Quality – Oriented Human Resources Management”, Organizational Dynamics 
Review, no.2, 1998 
Frois, Abraham: “Political economics”, Edition Humanitas, Bucharest, 1994 
Saluro, Okita: “Regarding through 21 century”, Edition AGER-The economist, Bucharest 1992 
*** Romanian Statistical Yearbook: The results and the performances of the enterprises [electronic presentation], 
www.insse.ro, 2004 

Aspecte privind importanta resurselor umane pentru cresterea economica

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