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of good practices, which are widely applicable. It does not take into accountsuch factors as company size, the period of its operation on the market, thenature of the given market, or its employee structure. In this model, managingpeople is considered a strategic activity in the service of the company%u2019sinterests, for which the management as a whole advocates. Labour relationshave an individual and unitary character, they are direct and based on thehypothesis that the interests of the employer and employees is the same %u2013 theprosperity of the company. The model does not take into account theaspirations of other stakeholders, e.g. unions. The philosophy of HRM is basedon the paradigm that a company can achieve the loyalty and commitment of itsemployees on the condition that there are common goals, mutual interactionsand respect, and shared responsibility. The company%u2019s values represent astrong element of its culture and strategic development and, consequently, akey determinant of people management.The critical model associated with HRM in Europe is characterised above allby its relation to the environment in which it was created and developed %u2013 aregulated labour market that reduces the flexibility of companies and isdominated by a national concept of management. The model has a pluralisticand collectivistic nature of labour relations, which allows different, possibly evenconflicting goals of employees, managers or shareholders to be taken intoaccount. Labour relations are examined in a broader context, taking intoaccount aspects such as the social atmosphere in the company, employeeturnover, their various motivations, and reasons for absenteeism. The modelemphasises the institutional framework of HRM associated with relatively strictlegislation, in which the right to work depends on the specific conditions of theenvironment in which the company operates.Based on the theoretical definition of both basic models, several authorsreflect on the question of whether there is a real European model of peoplemanagement in the real practice of companies, or whether and to what extentthe essential features of such a model can be identified. It is based on theassumption that the legal framework of the single market, which guarantees thefree movement of products and services, capital, and people, and whichgradually transforms national companies into European ones at almost all levels,undoubtedly contributes to a certain Europeanisation of the management inEuropean companies, including HRM. It represents a way of harmonisingeconomic and social goals in the company and social development based onEuropean values.It is indisputable that during the construction of the EU there was a gradualconvergence of the principles and practices of individual states, not only on aneconomic, but also on political and social levels. This rapprochement certainlycontributed to the growth of European awareness, and businesses were key932.3 Managing People in Europe