P3:Competence of Human Resource

ManagementVera Minina, Elena Dmitrienko and Anastasia Krupskaya

STROI Business Network project

P3: Competence of Human Resource Management

The Object of the Research – Finnish companies which belong to STROI business network and operate on Russian market.

The Subject of the Research:1) the features of HRM in Finnish

companies belonged to STROI business network;

2) core employees competences required for success.

The purposes of the Research To reveal differences in Russian and

Finnish approaches to HRM practices;

To design Core Employees Profile (CEP);

To work out the recommendations concerning HR practices improvement.

Data base

10 Finnish companies which belong to STROI business network and operate on Russian market

17 semi-structured interviews

CEO 5HR managers 6Linier managers

6

Differences in Russian and Finnish HR and HRM

practices

Results of empirical research

Differences in HRFeatures Russian

contextFinnish context

Employees’ competences:• Decision-making skills,• Willingness to take responsibility in decision-making

- -

++

Decision-making practices:• Long term orientation• Thorough process• Speed of decision-making

--

high

++

low

Discipline on the work place• Using working time for private matters • Importance of following project schedule

+-

-+

The main incentives andtheir impact on employeesIncentives Russia Finlan

dFinancial

Rewording for outstanding performance high high

Covering educational fees high low

Medical insurance high low

Pension programs low high

Support in housing loan and credit high low

Non financial

Work-life balance policy low high

Participating in decision-making process (for some groups of staff)

high high

Best employee recognition (from time to time) high high

Differences in HRM

Features Russian context

Finnish context

Similar recruiting practices + +

Managing adaptation process• Detailed program of adaptation• Coach support• Colleagues support

--+

++-

Reword system:• Clarity of parent company reward system

low high

Differences in HRM

Features Russian context

Finnish context

Similar training programs + +

Employees` development:• Attitude to development discussion• Development discussion procedure

pressure

assessment

opportunities

support

HRM alternatives for Finnish companies in Russia:

1. To accept and follow local practices in HRM

2. To adopt Finnish HRM practices in Russian environment

3. To develop and introduce different or mixed HRM system, based on results of empirical research

Core Employees Profile (CEP)

Results of empirical research

Core Employees (CE) focus

Lack of attention to identification of employees who are responsible for organizational competences Focus on people who are involved in core business

Identification those who have the ability to transform unique and valuable knowledge into organisational competitive advantage CE

CE need to be identified through required abilities (profile)

CE abilities: quotations from interviewsLearning do not afraid of responsibility

and decision-makingCompetence

strategic knowledge and multiple skills

Integration

transmit the feeling of companyhigh level of social or communicative skills, they create partnerships and networks

Reflection constantly monitor client’s situation

Trust whom you can really trust

CE Profile

L e arn in g

T ru st re la tio n s

R e fl e c tio n I n te g ra tio n

C o m p e te n c e

H um an C apital P rofi le for C E

L e arn in g

T ru st re la tio n s

R e fl e c tio n I n te g ra tio n

C o m p e te n c e

С ore E m ployee P rofi le

CE profile: identification

Do abilities mentioned before have to be developed equally?

CE Profile – the set of abilities that are in the certain proportion

Who defines CE Profile and how?

Who – individuals from three different

fields How – different factors and context

Three fields of CE identification

Social

Professional

Organizational

CE

HRM model based on CE focus

CE makes considerable contribution in business development CE focus is valuable for HRM

CE abilities could be managed Different CE Profiles could be

developed based on the abilities There is no universal CE Profile People from three fields of CEs’

identification should be involved in CE Profile development

Recommendations for Network development

Social skills are crucial for network development

Employees involved in network relations should be social competent

Social competence includes integration ability and ability in building and maintaining trust

Organisations involved in network should pay enough attention to these abilities development

Thank you for your attention!

P3:Competence of Human Resource Management

Vera Minina, Elena Dmitrienko and Anastasia Krupskaya