DEVELOPMENT OF HUMAN RESOURCES POTENTIAL IN THE CONTEXT OF THE EVOLUTION OF HR MANAGEMENT

Abstract

The article explores the evolution of Human Resource Management (HRM) and its transformation from a purely administrative function into a company's strategic asset. It examines the key stages of HRM development, highlighting the shift from traditional personnel management to a modern approach focused on developing human potential as a core source of an organization's competitive advantage. By analyzing the classical works of Michael Armstrong and Gary Dessler, the article sheds light on the changes in the object, scope of responsibility, and strategic focus of HR. Special attention is given to the four-wave HRM model proposed by Dave Ulrich, which illustrates the transition of HR from traditional personnel administration to the role of a strategic business partner. The contribution of leading theorists — Dave Ulrich and John W. Boudreau — is also examined, emphasizing how they expanded the conceptual boundaries of HRM by integrating it with business strategy and underscoring the importance of HR analytics in decision-making related to human and talent potential. Furthermore, the article analyzes contemporary trends in HRM, such as the digitalization of HR processes, the use of artificial intelligence and data analytics for predicting workforce needs, the shift in performance evaluation paradigms, and the increasing emphasis on soft skills development and employee adaptability. The research highlights the transformation of personnel management approaches, where a key aspect is creating an organizational environment that fosters the full realization of employees' potential. This involves optimizing HR processes and implementing innovative HR technologies and strategies that enhance employee engagement, motivation, and well-being. The findings emphasize that modern HR extends beyond its traditional internal personnel management function and is crucial in business transformation. Its function is no longer limited to workforce administration but rather encompasses the creation of a humane, resilient, and adaptive organization capable of effectively responding to future challenges. By strategically developing talent potential, HR contributes to long-term business sustainability, innovation, and the overall competitive strength of the organization.