Human Capital Management: Past and Present

V. V. Gavrilova

Ural State University of Railway Transport (Perm Institute of Railway Transport), Perm, Russian Federation

Keywords: human capital, railway industry, railway workers and employees.

Abstract: The article is devoted to the study of the issue of human capital in the railway sector. The history of the

railway industry is considered in the framework of the study of human capital. The prospects of human capital

development are studied on the example of modern students. The changes that are taking place in the railway

industry with human capital at the present stage are analyzed.

1 INTRODUCTION

The concept of "human capital" was first used by the

economist D. Minser in 1958. Then T. Schultz in

1961 and Becker in 1964 continued to develop this

idea. The Great Russian Encyclopedia defines

"human capital", which considers the combination of

human skills and satisfaction of social needs

(Balashov, https://bigenc.ru/). Initially, the theory of

human capital explained action of the factors of

production influencing cumulative release of goods

and inequality in income. Then the term began to be

interpreted more broadly, including human consumer

spending. here is a distinction between individual,

corporate and national factors, as well as general and

specific, negative and positive human capital. The

human capital is affected by mentality, quality of

education, health, accumulated knowledge, economic

freedom, supremacy of law, and safety of business

and citizens.

In this study, we are most interested in the

formation of individual capital of railway workers

and employees in the past and present. We will

describe those areas that influenced the quality of

training of specialists. These include education,

medical care, social security, and housing programs.

The development of the railway industry in Russia

begins in the 19th century, when the need for

differentiation of the workforce has not yet been

formed. Employers value, first of all, the ability of an

employee to work. Their social investments in the

employee provided for the provision of the labor

function: provision of food and housing needs. But

the railway industry, as a technological production,

required not only ordinary workers, but also trained

and skilled workers. Therefore, even before the start

of regular rail service, a system of training

engineering specialists was organized. Then there

were also technical schools where junior technical

personnel were trained for the railway. It can be said

that working on the railway required literacy and

preparedness from employees.

To attract specialists, the railway created some

conditions for its employees. It built houses,

organized training courses and educational

institutions, formed a decent level of wages. Since the

1880s, pension funds have been formed, including on

railways, both private and state-owned (Paintings

from the life of railway workers in the Russian

Empire, 2016). Pensions were paid not only to the

employees themselves, but also to the families of

railway workers, in case of loss of the breadwinner.

The wages of workers and employees of railways in

the XIX — early XX century were a little more than

30 rubles (Lashina, 2012), which was higher than the

incomes of factory workers. Programs were

implemented to provide railway workers with

housing. Such events contributed to the development

of the human capital of the railways. The increase in

the number of workers in the railway sector in

connection with the construction of railways had an

impact on the socio-economic processes in the

country.

In modern Russia, there are other areas where

highly qualified specialists are required. The railway

industry has serious competitors in the field of air

transportation. The aviation sector today requires

more complex training and is also interested in

creating certain preferences for its employees.

Therefore, it is important not only to preserve the

Gavrilova, V.

Human Capital Management: Past and Present.

DOI: 10.5220/0011579400003527

In Proceedings of the 1st International Scientiﬁc and Practical Conference on Transport: Logistics, Construction, Maintenance, Management (TLC2M 2022), pages 89-93

ISBN: 978-989-758-606-4

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

traditions of railway transport in relation to

employees, but also to develop new promising

directions in social terms.

2 "HUMAN CAPITAL" ON THE

RAILWAY

Despite the fact that the concept of "human capital" is

comparatively new, we can compare the quality of

human capital in different eras. Description of the

knowledge, skills and abilities of railway workers

was carried out in the 19th, 20th and 21st centuries.

We will look at the level of training and quality of life

of railway workers, try to identify the changes that

have occurred in this area and analyze the human

capital management program adopted by Russian

Railways JSC.

In order to understand how the railway industry

responds to the challenges of the time, we must

analyze its development and current state, assess the

potential that has been laid and is developing in the

present conditions.

We used the method of comparative analysis, the

method of document analysis, the method of

sociological survey of students.

Quite a lot of specialists have been engaged in the

study of human capital on the railway in one way or

another. We turned to those of them who analyze the

situation of workers and employees of the railway,

reveal the content of strategic plans for the

development of the railway industry.

Consider the situation of railway workers in the

past.

Let's start with such an indicator of human capital

as vocational education. The beginning of

professional transport education was laid in 1809. At

first, education was more of a construction profile,

but then they began to train locomotive drivers,

locomotive firemen, repairmen of rolling stock.

Educational institutions (Institute of the Corps of

Water and Land Communications, Military

Construction School) produced engineers and

average technical personnel.

The railway was a technological sphere of

production and competent specialists at all levels of

work were required here. Since 1869, railway schools

and conductor schools began to open, which were

funded from public and private sources. Since 1886,

specialists have been trained according to unified

programs, focusing on the applied nature of training.

By the beginning of the XX century, there were

"158 general education schools and 46 technical

schools with a three- to four-year period of study" on

the railways of Russia" (Kuznetsov, 2016). Education

in schools was paid, but the children of poor railway

workers were exempt from payment (Lashina, 2012).

College students were given the opportunity to live in

dormitories, paying a moderate fee for

accommodation. Teachers were paid a salary and

provided with housing from the railway. The boards

of Trustees at the railways opened libraries with

reading rooms for workers and employees of the

railway. The use of the funds was free.

Among the educational institutions of the railway

industry, the tradition of patronage and charity was

widespread (Cherkashin, 2005).

In connection with the construction of railways,

there was a need for housing for workers and

employees of the railway. Despite the development of

standards for living space, little has been done in this

direction. Workers' barracks were provided for the

workers, where they could spend the night, but not

live permanently. Day laborers were not provided

with housing. Those who occupied a more important

position in the service, were a qualified employee,

could count on providing relatively comfortable and

inexpensive housing.

The working conditions on the railway were

difficult, so the diseases of the workers were frequent.

The Board of Railways provided medical care to its

employees, which could be used by family members

and servants. Infectious diseases were frequent,

because railway workers and employees

communicated with many people and visited different

regions of the country. Workshop workers were most

often injured at work. Shunting masters, switchmen,

connectors were often injured at work, because they

worked in any weather and for several days. Eye

injuries were common among blacksmiths. In case of

illness and disability, there were benefits and

pensions. Full-time workers were treated and

provided at the expense of the Railway, day laborers

were charged a certain percentage of wages.

The researchers note that the employees of the

railway sector were quite well provided. (Vulfov,

2007). Large private railways were interested in

attracting qualified personnel and therefore tried to

create a better social infrastructure than their

competitors.

In general, the life and work of ordinary railway

workers were difficult. The management of the roads

was saving on their people. Employees could not

always count on receiving benefits and pensions.

Nevertheless, for a villager, getting a job on the

railway meant that the family would not starve, that

living conditions would improve. Railway workers

TLC2M 2022 - INTERNATIONAL SCIENTIFIC AND PRACTICAL CONFERENCE TLC2M TRANSPORT: LOGISTICS,

CONSTRUCTION, MAINTENANCE, MANAGEMENT

were provided with summer and winter uniforms. The

lower ranks received uniforms for free, which was a

great financial help.

With the active participation of P.P. Melnikov,

even under Nicholas I, conditions were created for

career growth for representatives of different classes.

At the end of the 19th century, the railway admitted

women to personnel positions. Women served in the

auxiliary units that ensured the functioning of the

railway: communications, education, healthcare,

office management, service sector.

The largest entrepreneurs purposefully invested

money in the development of the human capital of the

railways. The road needed full-fledged specialists.

During the construction of railways in Central Asia,

the authorities noted how quickly the qualitative

improvement of the skills of workers and their overall

development was taking place. In order not to form a

cadre proletariat in the region, not to create

prerequisites for the labor movement, it was

prescribed to mainly use the Russian-speaking

population, inviting them to work in Central Asia.

Working on the railway contributed not only to the

development of technical skills, but also to the

expansion of horizons, the formation of professional

thinking. It is interesting to note that after the October

Revolution of 1917, it was the railway workers who

took the initiative to hold subbotniks.

Today in the Russian Federation there is a whole

network of professional educational institutions that

train specialists for the railway. Some have survived

from earlier times, others appeared at a later time. The

Perm Institute of Railway Transport (PIRT) "grew"

into an institute from a railway school and a railway

technical school, it became the first specialized

school in the Urals for the training of railway

workers. The Ural State University of Railway

Transport, which includes PIRT, trains its specialists

according to federal state educational standards.

Familiarity with the programs of railway universities

shows that they assume a unified system of training

specialists in the country, because they are branch

universities. This indicates the preservation of

continuity in the "railway" education.

The salary of modern railway workers is still

attractive for job seekers. Social security programs

are also preserved. In Russian Railways JSC "in

January – October 2021, the average monthly salary

increased by 6.4% compared to the same period last

year and amounted to 65,414 rubles, (as of August

2021, the average salary in the Russian Federation is

52,355 rubles" (Konstantinov, 2021).

The current situation of railway workers and

employees has preserved continuity and traditions.

Russian Railways JSC has developed a set of

measures for the development of human resources on

the railway. The website of Russian Railways JSC

presents all the points of care for employees: social

guarantees, women's protection, health and wellness,

housing policy, labor protection, culture, sports,

volunteering (The official website of JSC Russian

Railways, http://rzd.ru).

Important elements of employee training and

development are: staff development, training,

preparation, refresher courses, certification and

motivation (Samarina, 2020). According to the

"Railway Transport Development Strategy for the

period up to 2030", the company shows its interest in

improving working conditions for its employees. It

provides for cooperation with the Ministry of

Education and its subordinate services. Thanks to the

links with universities, it is possible to lay the

prospects for the scientific development of the

relevant departments of railways: this includes

research, the creation of research centers, and the

creation of new equipment.

According to the target program "Youth of

Russian Railways" (Innovative digest: all the most

interesting things about the railway. Target program

"Youth of Russian Railways JSC (2016-2020)",

https://olddoc.rzd.ru), measures are provided to

support young workers in the field of education,

employment, integrated development of young

personnel in the field of sports, international

cooperation, and volunteer movement.

Training programs for older employees, which

have been implemented since 2019, are interesting

(Samarina, 2020). The programs allow senior

employees to master new competencies: to work

remotely, to master new skills.

Interesting research is being conducted on human

resources and training programs for specialists on the

railway (Shepilova, 2021). Russian Railways JSC is

looking for new forms of cooperation with

educational institutions – network training formats,

introduces methods of mathematical analysis of

personnel training. It can be noted that scientific

publications of railway educational institutions react

to many scientific developments and offer their

solutions to Russian Railways JSC.

Human resources in the company are developing

both directly – through training programs, and

indirectly – through stimulating employees with

social guarantees, improving working conditions,

introducing employees and their family members to

an active lifestyle.

The requirements for human capital on the

railway have been modernized. Today, not only the

Human Capital Management: Past and Present

ability to work is valued, but also the possession of

modern digital skills, the willingness to share the

interests of the enterprise. Russian Railways JSC

consistently implements a corporate development

program that affects numerous aspects of the

development of the company and its employees

3 CONCLUSIONS

It is worth pointing out that students of railway

educational institutions are an important factor in the

future development of railways.

As part of the collective work (Gavrilova, 2022),

a study was conducted on the ideological values of

students, including the Perm Institute of Railway

Transport. When analyzing the questionnaires of 1st-

year railway students, it was found out that 50% of

them are believers, Christians, 40% of them identified

themselves as Orthodox believers, 30% are hesitant

and choose Christianity as a close denomination, 20%

are non-religious. Among the most important civil

rights, 70% of students attributed the right to life, the

right to freedom and personal inviolability, the right

to privacy. In the fourth place was the right to

determine nationality, in the fifth – the right to

inviolability of the home. In sixth place is the right to

use the native language, in seventh place is the right

to freedom of conscience. In eighth place - the right

to freedom of movement and choice of place of

residence, in ninth place – the right to secrecy of

correspondence, telephone conversations, postal,

telegraphic and other messages. 80% of respondents

admit the existence of a civil society in modern

Russia. Half of the students surveyed associate

patriotism and citizenship, 40% do not associate these

concepts and 10% do not know whether this

connection exists. Half of the respondents associate

nationality and citizenship. 70% of respondents

believe that patriotism is inherent in any resident of

Russia, 20% think that it is more inherent in rural

residents, and 10% - city residents. 70% of students

believe that "homeland" is a place where a person

feels good and comfortable (i.e. they express

cosmopolitan views), 20% associate the concept of

"homeland" with the concept of "state" and for 10%

"homeland" is a place of residence. 30% are close to

the communist ideology, 30% are social-democratic,

20% do not define their political views, 10% are

liberals, 10% have declared themselves as nationalists

(which is alarming). The majority of students are

ready to defend moral and universal values. 90% are

ready to help people. Family comes first in the value

system, followed by health, freedom (3), justice (4),

knowledge (5), friendship (6), education (in 7th

place), love (8) and career (9th place). The cultural

preferences of our students have the following form:

40% can visit the theater once a year, preferring

different performances, of which 30% like comedy

productions. Cinemas are visited about once a

quarter, preferring different genres, although in most

of the recently viewed films, only comedies were

named. Exhibitions are visited by 20%, and they

could not name the subject. On average, they read 5

books a year, preferring fiction (40% named foreign

authors from recently read ones). 20% do not read at

all. The most common recreation is walking,

watching movies, girls like to visit cafes, about 50%

of respondents are engaged in sports.

Thus, students of the Perm Institute of Railway

Transport support quite traditional values: family,

health, freedom, they are ready to defend moral and

universal principles of existence. They are inclined to

the Christian religion, value the right to life, freedom

and personal integrity. 2/3 perceive the concept of

patriotism quite positively, while for the most part

they are cosmopolitans, believing that the homeland

can be considered the place where it is good, and not

where you were born and needed. More than half

adhere to social democratic views and position

themselves as activists. Reading and intellectual

activities are not a priority activity in free time.

Accordingly, the program items on the scientific and

technical work of the staff should take into account

these data and adjust the development programs.

Such surveys will help to identify the

predisposition of future railway workers to something

and take these points into account in strategic human

capital management programs during the

development of the industry.

The railway industry has accumulated a lot of

experience in solving many issues related to workers

in this field. Many traditions have continuity. Care for

the education of railway workers, support of social

guarantees at industry enterprises, education of

railway transport workers, development of scientific

and technical traditions.

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Balashov, Yu. K., Human capital. The Great Russian

Encyclopedia, https://bigenc.ru/economics/text/

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Paintings from the life of railway workers in the Russian

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/blog-post_9.html.

Lashina, L. S., Krasnikov, A. A., 2012. Working and living

conditions of workers and employees of joint - stock

TLC2M 2022 - INTERNATIONAL SCIENTIFIC AND PRACTICAL CONFERENCE TLC2M TRANSPORT: LOGISTICS,

CONSTRUCTION, MAINTENANCE, MANAGEMENT

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Human Capital Management: Past and Present