Employment Relations in Russia
LIR 554: COMPARATIVE EMPLOYMENT RELATIONS10/07/2008
Chinweoke Ofuonye Deirdre Darnall Emmy Yimei Lin
Kerri Kristich
•Founded after dissolution of Soviet Union in 1991.•World's leading natural gas exporter and 2nd leading oil exporter. •Largest stockpile of nuclear weapons of mass destruction in the world. •Second largest fleet of ballistic missile submarines and world’s top supplier of weapons accounting for around 30% of worldwide weapons sales. •One of the world's fastest growing major economies and is the world’s largest country•Permanent member of the United Nations Security Council and the G8•2nd largest collection of billionaires in the world, gaining 50 billionaires in 2007 for a total of 110
Ex-USSR countries: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan
U.S.S.R
THE RUSSIAN FEDERATION
RUSSIA
Capital and states Moscow, 83 subjects grouped into 7 federal districts
Language(s) Russian, 27 other sub-official languages
Population 142 million (9th) ↓
Religions Christianity, Islam, Buddhism, Judaism and atheism
Nominal GDP/Per capita $1.290 trillion (11th)/ $9,075 (54th)
Unemployment rate 6.22% ↓
Political system Representative democracy
Currency Russian Ruble
Government Federal semi-presidential republic
Economic system Mixed (Shifting towards Capitalism)
Foreign perception Powerful
Russia: Its Politics
Political Structure
• The Russian Federation• Three branch System
– Executive Branch – Legislative Branch
• Federal Council: republics, oblasts and krais, federal cities
• Duma
– Judicial Branch• Constitutional Ct.• Supreme Ct.• Superior Ct. of Arbitration
Political Parties
• United Russia• Communist Party of the Russian Federation• Liberal Democratic Party of Russia• A Just Russia
Democracy or Not?
1. Are Key Officials Elected by the People?
2. Are Political Powers Divided Among the Branches of the State?
3. Are Laws Supreme?
Russia: Its Economy
Economic Facts Fiscal Year calendar year
GDP (nominal) $1.290 trillion
GDP (PPP) $2.097 trillion (9th )
GDP growth 8.1%(35th )
GDP per capita $14,800(75th )
Inflation 12%
Average salary $640 per month (early 2008)
Population below poverty line 15.8%
Imports $260.4 billion
Exports $365 billion
Soviet Union (1922 to 1991 )
Key word: Centrally Planned Economy• The Communist Party controlled all aspects
of economic activity • Prices were ONLY an accounting
mechanism• Plan Setting (five-year plan and annual
plans): countrywide regional unit • Management: top down
Boris Yeltsin(1991-1999)
• freeing nearly all prices • slashing defense spending • eliminating the old centralized distribution
system • completing an ambitious voucher
privatization program • establishing private financial institutions • decentralizing foreign trade
1993smal l enterpri ses
15%
85%
State Owned Private Owned
al l enterpri ses
67%
33%
State Owned Pri vate Owned
Vladimir Putin(2000-2008)
Dmitry Medvedev(2008-)
Issues to solve:• Price• Privatization of Essential Sectors• Law
**lack of legislation
**lack of effective law enforcement
**Government decisions affecting
business are arbitrary and inconsistent
Its Employment Relations system
Labor Progression and Role of HR
• Free labor & capitalism• Forced labor vs. true market
– Little to no rewards for hard work– Little motivation
• Entrepreneurial characteristics– “Business”– Profit making
Labor Progression and Role of HR
• Previously assigned to specific occupation and job
• Career changes frowned upon• No initiative for employees at work
– Little reward through promotions– Internal motivation and personal effort
considered secondary to external evaluation
• Positive and negative consequences
Positive Consequences
• 2 strategies– Survival– Active search for a new career
Negative Consequences• Demise of previous enterprises
COMPARISONS RUSSIA U.S.A
Checks and balances Low High
Authority Centralized, flows down Diffused from people, flows up
Social philosophy Socialism → Capitalism Dominant capitalism
Rights Subordinated for common good
Celebrated, protected
Literacy & Unemployment rates
99% / 6.22% ↓ 99%/ 4.6%
Health care Free, universal Primarily self-funded, Employer and National programs
Education Paid by Govt./ Free Primarily self-funded
Rewards system No defined basis, thus low motivation
Meritocracy or Seniority
THANK YOU!
Sources
Modern Russia, Mikk Titma & Nancy Brandon Tuma. New York, NY. 2001.
Developments in Russian Politics, edited by Steven White, Zvi Gitelman & Richard Sakwa. Durham, NC. 2005.
http://en.wikipedia.org/wiki/Economy_of_Russia http://www.theodora.com/wfb/russia_economy.html http://www.goehner.com/russinfo.htm http://www.transparency.org/policy_research/surveys_indices/cpi/2008