Question

Please conduct research on Russia's human resource practices and laws.

Answer 1

Russia's human resource practices and laws

Human resource management and practices reflect the activities followed by the management in employee relations. Strategic human resource practices help in training and development, employee motivation, recruitment, employee selection, leadership, and communication. It helps in the organization achieving its short and long-term goals and objectives.

In Russia, employees are treated as human capital and are predominantly used to generate capital for the organization. The companies have bureaucratic, autocratic, hierarchical management structures. The companies are focused on generating revenue, making profits and surviving in business. Many organization has started implementing and focusing on human capital, organization structure, compensation, training, motivation, etc. Some are followed to comply with local laws and regulations.

Labor code:

The labor code supports the employee over the employers. It is a legislative requirement for the employer to issue an internal order when an employee is hired, granted new position, granted a vacation, bonus, is disciplined or dismissed. A normal week cannot exceed more than 40 hours it can be a 5-6 days a week. Any extra work will be considered overtime which is 150% of regular compensation for the first 2 hours after 40 hours and 200% thereafter. The labor code provides for meal breaks, which should be a minimum of 30 minutes to a maximum of 2 hours. All employees should get a day off or tow day off depending on 5 or 6 day week. The employees currently have 8 paid days off and if the day is on the weekly off they get the next working day off.

Compensation, Bonus & Incentives:

The compensation is based on the theory of collectivism and high uncertainty avoidance. Most companies will ensure full employment and will divide the incentives and bonus across the organization without considering individuals performance. The people are rewarded for the overall growth of the organization. The negative is that the employees don’t focus on individual goals and are taking a bonus as an entitlement. There is no standardization in the compensation system and the employee's salary varies from company to company based on the size of the business.

Management of individual performance:

Discipline is enforced by imposing monetary fines across Russian organizations for violating the rules. Fines are used as a standard practice to enforce discipline in the organization.

Motivation Techniques:

The Russian companies follow incentive and bonuses to motivate the employees. Monetary benefits are extensively used to motivate and drive employees.

Recruiting and staffing:

Recruiting and staffing activity is basic. The organizations do not pay to find the employees.

Training and development:

The employee is recruited based on his skill set and qualification. Training is basically on the job training. Some western companies take both soft and hard training approaches in Russia. The companies like to take on trained staff and groom them on the job according to companies culture.