Human Resource Management in E
Human Resource Management in E1. INTRODUCTION 2
2. ENVIRONMENT 3
History 3
Political and economical context 4
Educational system 5
Cultural aspects 6
Business environment 7
3. EASTERN EUROPEAN HR PRACTICES 9
Recruitment 9
Compensation 9
4. EU ENLARGEMENT 11
5. AN EASTERN EUROPEAN HRM MODEL? 13
6. CONCLUSIONS 15
Ideas for future research 16
7. BIBLIOGRAPHY 17
1. Introduction
Many Western firms are rapidly investing in, or forming joint ventures with, firms in Eastern European countries. Despite the growth in Direct Foreign Investment (DFI) in Eastern Europe, Western managers know relatively little about the Human Resource Management (HRM) practices of these countries. In this paper HRM practices are discussed in Eastern European states, such as Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Russia. Although there are both historical and cultural differences between these countries, these countries will be dealt with together, as they all have numerous elements in common that enable managers or researchers to see them as a whole.
The purpose of this paper is to analyze if an Eastern European HRM model can be constructed on the basis of an analysis of Eastern Europe on several areas. First, the environment is analyzed, in which several aspects are covered, such as political context and history. The emphasis lies on culture and (possible) implications for business, and HRM specifically. Secondly, specific Eastern European HR practices are dealt with in chapter three. Here too, several topics are analyzed. In the fourth chapter the implications of EU enlargement are considered in relation to Eastern Europe. As many of these countries are potential candidates for a membership of the EU, the necessary changes and implications are investigated. Based on all the forgoing, an attempt is made to establish an Eastern European HRM model in the fifth chapter. Finally, in chapter six, conclusions are given followed by directions for future research.
2. Environment
The analysis of the environmental aspects of Eastern Europe include the following aspects:
� History
� Political and economical context
� Educational system
� Cultural aspects
� Business environment
History
Looking at Eastern Europe's history, several main events can be identified that have an impact on today's business or cultural situation. First, the two World Wars had a major impact on the creation of the political and economic gap between Eastern and Western Europe, especially the Second World War. Eastern Europe came under the influence of the former Soviet Union, which implied that all countries were under direct political, military and economic control resulting in a very centralized economy. This type of economy had a profound impact on the HRM practices that were used in those countries, which is further explained in the next chapter. Secondly, under Gorbatsjov as the president of the former Soviet Union, contact with Western Europe was sought, resulting in the break-up of the Soviet Union and the start of a new era for Eastern Europe. Slowly, but gradually a shift was realized from a central towards a market economy, again with the necessary implications for (HR) management.
The qualities...
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