Employment Relations in Russia


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Found a quick and colorful presentation we did in school for Ruth Aguilera's Comparative Employment Relations/International HR class. Thought to share!

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Employment Relations in Russia

  1. 1. Employment Relations in Russia LIR 554: COMPARATIVE EMPLOYMENT RELATIONS 10/07/2008 Chinweoke Eke Deirdre Darnall Emmy Yimei Lin Kerri Kristich
  2. 2. U.S.S.R THE RUSSIAN FEDERATION•Founded after dissolution of Soviet Union in 1991.•Worlds 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 weaponsaccounting for around 30% of worldwide weapons sales.•One of the worlds 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 110Ex-USSR countries: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania,Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan
  3. 3. RUSSIACapital and states Moscow, 83 subjects grouped into 7 federal districtsLanguage(s) Russian, 27 other sub-official languagesPopulation 142 million (9th) ↓Religions Christianity, Islam, Buddhism, Judaism and atheismNominal GDP/Per capita $1.290 trillion (11th)/ $9,075 (54th)Unemployment rate 6.22% ↓Political system Representative democracyCurrency Russian RubleGovernment Federal semi-presidential republicEconomic system Mixed (Shifting towards Capitalism)Foreign perception Powerful
  4. 4. Russia: Its Politics
  5. 5. 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
  6. 6. Political Parties• United Russia• Communist Party of the Russian Federation• Liberal Democratic Party of Russia• A Just Russia
  7. 7. 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?
  8. 8. Russia: Its Economy
  9. 9. Economic FactsFiscal Year calendar yearGDP (nominal) $1.290 trillionGDP (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 billionExports $365 billion
  10. 10. 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
  11. 11. 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
  12. 12. 1993 sm l ent er pr i ses al al l ent er pr i ses 15% 33% 67%85%St at e Owned Pr i vat e Owned St at e Owned Pr i vat e Owned
  13. 13. Vladimir Putin(2000-2008)
  14. 14. 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
  15. 15. Its Employment Relations system
  16. 16. 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
  17. 17. 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
  18. 18. Positive Consequences• 2 strategies – Survival – Active search for a new career Negative Consequences• Demise of previous enterprises
  19. 19. COMPARISONS RUSSIA U.S.AChecks and balances Low HighAuthority Centralized, flows down Diffused from people, flows upSocial philosophy Socialism → Capitalism Dominant capitalismRights Subordinated for common Celebrated, protected goodLiteracy & 99% / 6.22% ↓ 99%/ 4.6%Unemployment ratesHealth care Free, universal Primarily self-funded, Employer and National programsEducation Paid by Govt./ Free Primarily self-fundedRewards system No defined basis, thus low Meritocracy or Seniority motivation
  20. 20. THANK YOU!
  21. 21. SourcesModern 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_Russiahttp://www.theodora.com/wfb/russia_economy.htmlhttp://www.goehner.com/russinfo.htmhttp://www.transparency.org/policy_research/surveys_indices/cpi/2008