Human Resource Management Practice in the United States of America and Russia - Case Study Example

HRM practice in USA and Russia Contents Contents 2 Introduction 3 Discussion 3 HRM practice in USA and Russia 3 Factors influencing HRM practice 6 Conclusion 7 References 9 Introduction Human resource management practice usually differs from one region to another. In this study, HRM practice in Russia and USA will be thoroughly analyzed. A comparative analysis shall be provided in context of these two countries. Globalization has led to changes in management practices across the globe. Social and economic structures are inter-connected and this influences human interaction prevalent within the structure. Managers operating in international context usually face human resource demand and challenges in a different manner. Human resource management practices are basically designed to accomplish objectives or desirable goals on a global platform. Culture plays a significant role in terms of designing human resource management practice. HRM practice in Russia is highly distinct from that of USA. Socio-political nature and cultural context are different in these countries. This study shall be divided into two segments. In first part human resource management practices in Russia and USA will be analyzed and the second part shall deal with influencing factors affecting human resource management practice. Discussion HRM practice in USA and Russia Human resource management practice in United States is unique since the country focuses on acquiring talented individuals on board. The recruitment system which is implemented by the country is neither position based nor career based. Direct application procedure is utilized while recruiting for public sector. External applicants can easily apply for different organizational positions. In context of recruitment, no diversity policies are encouraged but more preference is given specifically to military veterans. Incentives or bonuses are formulated by agencies whereas pay-scale is structured by the government. Employment cost index is responsible for calculating base salary and there is no negotiation encouraged at collective or individual level. Salary level is adjusted on basis of seniority positions. Promotions at all possible staff level is on basis of qualifications. Performance appraisal scheme or experience is not considered to be vital factors when it comes to promotion (Paauwe, 2004). Job postings are available to all employees and HR department or assessment centres are solely responsible for selection of applicants. Hierarchical grades are not taken into consideration while giving promotions. Coaching sessions are also hosted for promotion of disabled, women or other minority section. Internal mobility level is stable within United States. Training programs are organized for all team members annually, besides providing training to those upon entry. Performance assessment tools are also used in United States. It is a mandatory concept for all team members. Meeting is conducted with superiors after every six months and feedback obtained is written annually. The criteria used for performance assessment mechanism is interpersonal skills, outputs and competencies. In United States, more emphasis is given to performance related pay, which is not witnessed in other OECD country. This concept is mandatory for all team members and is often regarded as a part of incentives or bonuses. Work conditions in United States are distinguishable from that of other OECD countries. 1840 hours is average working hours annually existing in this country. Weekly working hours is comparatively more and there is less number of annual leaves (Dowling, Festing and Engle, 2008). The central human resource management body monitors issues in context of equal opportunity and code of conduct. Workforce strategies are designed in this country in order to reduce probable competency gaps. On the contrary, human resource management practices are highly distinguishable in Russia. Recruitment system of this country combines both position based and career based concepts which was not included within recruitment policies of United States. Competitive examinations are key area of concern while entering into civil service sector. These open competitions are not essential while applying for fixed term contract or for any junior positions. Assessment centres have been recently employed but the focus is on merit based recruitment. In United States most job positions are open to external applicants but in Russia equal opportunities are given to both internal as well as external applicants. Base salary is framed by Russian Government and it is subjected to inflation. There is no such timeframe for revising pay structure unlike pay policies of United States. Employment cost index forms the basis of base salary calculation in United States. Compensation scheme in Russia consists of monthly salary, class ranking allowance and base salary and possible monthly allowances. Job content, seniority and experience is applicable only on base salary calculation of top management unlike that in United States. Performance assessment system in Russia is not as effective as in United States. In certain service sector in Russia, appraisals are given to employees once in three years. United States gives more importance to competencies and outputs for performance assessment but in Russia inclination is towards training programs organized in previous years and interpretation of superior on behaviour of team members. Assessment in Russia is aligned with career advancement, unlike United States where remuneration and career advancement are given equal importance for performance assessment (Gurkov and Zelenova, 2009). Performance related pay is encouraged in United States but it does not hold significance in Russian countries. Qualifications along with experience are key factors taken into consideration while giving promotions. Hierarchical level was not an area of concern in United States but in Russia it forms one of the major restrictions. Competitive exams have to be undertaken by individuals while getting promoted across different hierarchical levels. Active policies like that implemented in United States for promoting disabled, women, minority groups, etc., are not encouraged in Russian countries. Internal mobility is stable in this region and there are strategies developed to create a pool of talent. An extended training program is incorporated in Russian companies which are distinguishable from training sessions structured for new entrants. 1642 working hours annually is witnessed in Russia, and this is comparatively much lesser than that in United States (Domsch and Lidokhover, 2012). There is an average of 14 days provided to employees as sick leaves and those with higher percentage of absenteeism is recommended preventive care. Factors influencing HRM practice United States have framed its human resource management policies according to culture and socio-political factors. Culture plays a vital role in structuring human resource management policies since focus is on motivating employees to perform well. Planned reforms at public employment levels are due to governmental authority. The central human resource management unit is responsible for framing such policies. Personnel management office of United States is responsible for developing and implementing HRM policies. Performance appraisal systems, recruitment policies and assessment criteria are framed by this department. It can be stated political interference is greatly observed in United States. Companies based in United States needs to work in accordance with governmental authorities. On the other hand, culture plays a significant role in designing pay schemes, training and development programs, performance appraisals, etc. In United States, employees are motivated through offering bonuses or incentives. Hence the approach of performance related pay is prevalent in this region. Qualifications are an important aspect in American companies since all individuals are highly qualified but might possess less experience. Career oriented nature of employees is incorporated within framing human resource management policies. Interpersonal relationships are not a major area of concern in United States and this behavioural aspect greatly influences human resource management policies. Russian companies also work in collaboration with government policies and frameworks on human resource management. Cultural aspect also is an important factor since it determines nature of employees and ways to keep them motivated. For instance, in Russia, companies focus on enhancing skills and knowledge base of team members, rather than providing them with some targets. Performance related pay is not encouraged in this region because employees are more concerned with interpersonal skills and gaining sufficient experience. Experience is firstly acquired by employees and this forms the basis of career advancement. The frequency of training programs is more in Russia since team members are inclined towards gaining more knowledge. Cultural dimensions are different in Russia in comparison to United States. This aspect influences human resource management policies and it initiates development of interpersonal relationship. It can be stated that political and economic conditions are the major factors which drive company’s growth. To be more precise these conditions help to structure workplace environment and facilitate employees to perform better in future years. In overall context, human resource management policies are key drivers behind economic growth of a company. Instable political conditions greatly affect the degree of company’s performance. Conclusion This study clearly reveals the fact that human resource management policies usually differ from one region to another. HRM policies in Russia are highly distinguishable from that in United States. Payment scale which is regarded as a universal standard across the globe is witnessed to change from one country to another. The basic pay structure is framed with concern of government and then there are various allowances as per country specific requirements. There are different influencing factors which alters human resource management policies. Training and development session in United States is restricted but in Russia it is of prime focus. Globalization has led to changes in HRM policies and this influences managers to adopt best strategies. Political and socio-economic factors are the most influential elements in context of human resource management policies. References Domsch, M. E. and Lidokhover, T., 2012. Human resource management in Russia. England: Ashgate Publishing, Ltd. Dowling, P. J., Festing, M. and Engle, A. D., 2008. International human resource management: managing people in a multinational context. UK: Cengage Learning EMEA. Gurkov, I. and Zelenova, O., 2009. Human resource management in Russia. London: Routledge. Paauwe, J., 2004. HRM and performance: achieving long-term viability. Oxford: Oxford University Press. Read More