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Abstract
<jats:p>This article presents a comparative analysis of classical human resource management (HRM) concepts and the core principles of behavioral economics. It demonstrates the limitations of the traditional rationalist management paradigm, which relies on the flawed assumption of a fully rational employee. In response, the study argues that modern management must systematically account for cognitive biases, bounded rationality, and the contextual nature of decision-making. Specifically, the paper focuses on integrating the foundational ideas of Herbert Simon, Daniel Kahneman, Amos Tversky, and Richard Thaler into established HRM methodology. The primary aim of this research is to evaluate behavioral economics within the context of HRM, synthesizing these theoretical frameworks to demonstrate their practical and methodological value. To achieve this, the study analyzes the evolution of theoretical approaches to HRM while highlighting the constraints of classical models. It then examines the fundamental principles of behavioral economics to determine their direct impact on HR processes. Using methods of theoretical synthesis, comparative analysis, and conceptual modeling, the paper evaluates classical versus behavioral HR models to establish a newly integrated framework. The resulting integrated HRM model successfully combines the structural principles of the classical school of management (particularly the approaches of Frederick Taylor and Henri Fayol) with modern behavioral tools, such as choice architecture, cognitive motivational mechanisms, and realistic personnel evaluation systems. The study concludes that behavioral economics provides an essential methodological foundation for organizations, enabling an adaptive, strategically aligned, and human-centered management model that accurately reflects how employees actually behave and make decisions.</jats:p>