Russia and the UK have differing approaches to human resource management that reflect their distinct histories and cultures. In Russia, HR practices have been influenced by the Soviet era where loyalty was valued and employees were seen as a cost. Today, Russian companies utilize some Western practices but the domestic model also persists. The UK takes a formalized approach defined by legislation and standards. Diversity is a challenge as minority groups face barriers. Performance reviews aim to motivate and develop employees according to their unique strengths. Overall, multinational companies must tailor their HR strategies to account for cultural differences between countries to effectively manage a global workforce.

1. Comparison of
Human Resource
Management
in Russia and United
Kingdom
Monika Kupiec
Word count: 2200

2. PAGE 1
1. Introduction
Globalisation is present in each life aspect and gives possibilities for companies to grow
and expand. Considering exogenous factors is an important stage, as the external forces
cannot be controlled by MNC and creates challenges and issues affecting an organisation
(Briscoe, Schuler, Tarique, 2012). Russia with its human force and economical
possibilities is an interesting open market for multinational companies as the country is
still developing after the collapse of communism. The United Kingdom (UK) is one of
the biggest and best developed markets in the world. Diverse population can be easily
targeted by MNC’s that want to open businesses dedicated to immigrants.
2. Countries profiles
The Russian Federation is a post-soviet country that is the largest in the world, placed in
Europe and Asia. After communism fell in 1991, the country started building its
democracy and open, market economy. President Vladimir Putin is the most important
political figure and controls government and national media (BBC, 2016). The economy
is based on petrochemical industry and gas export and nowadays Russia is trying to open
for other markets to increase its income. Russia has a highly developed nuclear power
industry, defence and space technology (NationMaster, 2016).
The UK is a country in North Europe, consisted of England, Wales, Scotland and
Northern Ireland. It is located on an archipelago and surrounding islands. The United
Kingdom has always been important and influential due to its political and cultural
influences, economic and military power around the world. It was the first industrialised
country with economy based mainly on service industry rather than manufacture. The
country has a unitary democracy with constitutional monarchy. Prime Minister David
Cameron (Conservative Party) is head of state and Queen Elizabeth is head of state.
There is a multi-party system (BBC, 2016). The economy is mostly based on services,
including banking, insurance and business. The UK is a net importer of energy and has
highly mechanised agriculture (NationMaster, 2016).
(author, based on BBC 2016, NationMaster, 2016)

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3. Dimensions mostly impacting HR
There are many different factors that can influence HR, such as culture, legislation,
history, economy, demography, management style and politics. All might be relevant to
consider by MNCs, however, depending on country, some are more or less challenging
(Edwards, Rees, 2011).
3.1 Historical influences in Russia
It is sufficient for MNCs’ to understand that workforce in the country is divers in
experience, one group are the Russians who experienced Soviet Union’s practices and
cultural spirt, the other group are young people, who started their careers after post-soviet
reforms (Denisova- Schmidt, 2011). This impacts HR by taking into consideration
different approaches in implementing changes in companies’ culture and working
methods. These are ‘imported model’ that western methods should be implemented and
‘domestic model’ that HR should be left to local specialists as they are able to understand
the culture. In the past, people in companies were seen as cost not a resource. There was
division on few departments that shared responsibilities, for instance ‘Cadre’ was dealing
with administration including hiring, firing, transfers, retirement and communication with
external parties. ‘Training and Development Department’ took care of pre and re-
trainings, most of which was formality to fill bureaucratic needs for employees’
accreditation. Employees’ career development was limited, what did not encouraged to
hard work. Pay rise could be achieved only after promotion. Recognition through medals
and official mention was common practice and more desired than financial award.
Companies used to have agreements with universities and schools and the students could
have an internships or write their final research paper there. Raspredelenie- distribution,
meant special arrangement and graduates from technical school was guaranteed a
position, students with best results and the married ones had right to choose the company.
Loyalty was very important and appreciated by rankings of best workers in the month or
year that were announced in newspaper and a radio (Denisova- Schmidt, 2011).

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3.2 Labour diversity in UK
The UK’s market is one of most diverse in the world, which is proven by statistics. There
are advantages and disadvantages of such a mixed work force. MNCs have to be aware
that working with people with different cultural and often educational background
demands adjusting methods and approach, for instance cultivating different religion
traditions can impact absenteeism. Other issue might be implementing company culture
and values from headquarter. Ethnic minorities are less likely to be on high managerial
positions, even if they have the same qualifications and education level as locals
(Beardwell, Thompson, 2014). The challenge for MNEs is to avoid mistakes when
choosing employees, as it generates costs, difficulties in providing training and smooth
cooperation between headquarters and the new unit (Briscoe, Schuler, Tarique, 2012).
(Nomisweb, 2016)
3.3 Business culture and ethics
Russian’s communication style is direct and they do not hesitate from confrontations. In
public they tend to be formal and closed, personally being open and warm. Sometimes
during one meeting they can be both emotional and reserved. Punctuality is traditionally
important for Russians, especially meeting guests from abroad. However, it is observed
that senior directors demonstrating their power by making visitors wait. On meeting with
equals punctuality is still important. Meetings should be re-confirmed before with a
secretary and direct contact is much preferred than emails. Formal agenda is not common

5. PAGE 4
practice. The most senior person leads the meeting, dictates topic and time. As a post-
soviet tradition, the boss or senior director is very important and powerful actor, which is
demonstrated by emphasis of difference in authority (Heinze, 2014). Corruption in Russia
is seen as part of normal process and it is even said that current president allows it
happen, same as nepotism (BBC, 2016).
On the other hand, equality and sense of fairness have long adopted in the UK, even
though authority is important and respected. Communication style in the UK tends to be
indirect and suggestive. It is important to know it and read between lines when we want
to work with Brits to avoid misunderstandings. In a polite way, they express orders and
give tasks to others, for instance by saying: “Perhaps we could ask Jack he could give
project proposal by lunch time.” Actually this could mean: “Tell Jack he must give the
project proposal by lunch time.” On the other hand direct communication can be seen
blunt and even rude. Communication style between supervisors and subordinates usually
is informal, but keeping authority rules is strictly respected (Services I.G,
2016).Punctuality is very important for the British, who are very time conscious. They
are coming on time or just before and it is impolite to be late for meeting. In case of short
delay it is needed to apologise and excuse yourself. For a long delay it is important to call
and inform about how much time we need to be on place or postpone the meeting
(Passport to Trade, 2014) Meetings are a key element of business communication.
Personal assistants are usually taking care of scheduling them in senior management’s
daily plans and it is important to plan the meeting while ahead. Meetings are formally
structured, have attendance list, minutes, kept in time, and following the agenda is a
must. Using video conferencing and conference calls is common practice that helps save
time, also meetings are often confirmed via email. Bribery and corruption are a serious
matter for British people, who value fairness and honesty (Jolly, Kettaneh, 2013).

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(Transparency, 2016)

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4. Hofstede’s culture dimensions
Looking at Hofstede’s culture characteristic, Russia has low to medium individualism,
medium to high power distance, medium masculinity, high uncertainty avoidance,
medium long- term orientation and low indulgence (Iles, Zhang, 2013).
UK has very high individualism, low power distance, high masculinity, low uncertainty
avoidance, medium long term orientation and high indulgence (Dowling, Festing, Engle,
2013).
(ITIM, 2016)

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5. Examples of HR practices
5.1 Recruitment
Today Russian companies are mostly using Western recruiting methods, however the
‘domestic model’ firms are filling positions when it is needed. According to surveys, the
‘imported’ methods help to achieve better results in staffing. Recruitment agencies, head-
hunting, on-campus recruiting and word-of-mouth, are popular methods of staff sourcing
(Shekshnia, 1999). Many companies are interested in young Russians, who are studying
abroad. They are valuable candidates after graduation. To select best people several
interviews are conducted, diplomas are checked, but most important is impression of
being hard-working, ambitious and previous experience. CVs are done below western
standards, as before it was not popular to use them. Enclosing references is not required,
asking previous employer about the candidate is legally forbidden without written
permission. Russian managers often prefer to relay on their intuition, which enables
stating formal and general criteria. Companies are obliged to have probation periods,
three months for non-management and management positions, and six months for top
management (Denisova- Schmidt, 2011). Some companies keep the new staff on
temporary contracts in case of market changes. There is also noted increases in replacing
expatriates by local professionals (Shekshnia, 1999). Recruitment often is centralised and
depends on the CEO choice and preferences. HR roles are closed in administrative frames
(Iles, Zhang, 2013).
Methods used in the UK are formal and standardised. Jobs are usually advertised on
professional websites, while using recruitment and head-hunting firms are also popular
(McCourt, Eldridge, 2003). Applicants must have a tailored CV and cover letter and often
need to fill up formulates with specific questions that will help recruiter in shortlisting.
Then there are interviews with selected candidates. It is common firstly do one over a
phone and then chose best people for face-to-face meetings or assessment centre
(Leatherbarrow, Fletcher, 2014). Some companies asking candidates to do online tests.
Popular ones are numerical and psychometrical. The purpose is to identify abilities,
intelligence and attitude and should be prepared by specialists. Assessment centres
usually take place in a headquarter or recruitment centre. Candidates are given the same
types of tasks to complete in the same time, for instance presentation, simulation of
business activities, personal or functional role- play, group work. Assessment day
candidates have to prepare before, supervised and conducted by specialists- selectors. At
this stage is common to give feedback to candidates who were not chosen for the position
(CIPD, 2016).

9. PAGE 8
5.2 Salaries and performance appraisal
To decide on basic salary rate, companies have two methods. One is to do surveys for
different positions in specified businesses or regions, the other approach - “job grading”
analyses rates appropriately to skills, duties and position scope. The main challenge for
MNCs’ HR is to control current compensation level offered by other companies to
managers, who are highly attractive on the market. Keeping an eye on it helps to reduce
staff turnover in managerial roles (Denisova- Schmidt, 2011). High salaries are a good
motivational factor, it is noticed that in some companies highly paid management equals
to better performance of whole firm. Internal promotions are often based on merit basis
not on seniority, it gives perception of justice and fairness to employees who know that
hard work is appreciated (Fey, Bjorkman, Pavlovskaya, 2000). Some companies are
paying unofficial salaries or incentives, it is post- soviet tradition of keeping separate
finance internal with actual results and external with desired figures. This practice is well
known and even international banks operating there are aware of it (Rubens, 1995). Lack
of standardised performance appraisal criteria leads to over using power by line
managers, who are using their own criteria, similarly as in recruitment a lot depends on
CEO or line manager who is main responsible for all the decisions (Gurkov, Zelenova,
2012).
Contrary to these practices, the UK’s companies follow formalised and standardised
procedures in employees’ payments and appraisal, respecting legal regulations. The
Government regulates The National Minimum Wage for workers who are 16- 24 years
old and National Living Wage for employees over 25 years old. The rates are changed as
follows in October and April each year. Employers, despite size of the business, have to
adopt wages to the rates (GOV, 2016).
As HR is very well developed in the UK, companies use a few methods to assess the
performance of employees. Most popular ones involves feedback session with the
individual, some companies are using ‘360 degree feedback’ that includes comments
from customers, colleagues and other managers. The sessions are prepared and scheduled
before, usually the person who is conducting it takes notes that are filed. The approach
for feedback is changing. Before the focus was on past performance and discussing
issues, while now it is more focused on development needs and strengths of the
individual (Leatherbarrow, Fletcher, 2014). Performance is usually checked against job
description. The purpose is to motivate and reward for contribution to strategic goals, and
it is also a base to reward best performing employees with promotion (Beardwell,
Thompson, 2014).

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6. Conclusion
MNCs have to be well prepared to operate in a foreign country, as depending on the
country, challenges might vary. Management style from headquarters might need
adjustments to habits and common practices. In Russia, the challenge is to understand
post-soviet detritus. Doing researches and cultural trainings can help in companies’
development. The UK has a diverse environment. Common methods might be costly and
demand long-term preparations. Formal approach demands high attention to details and
constant follow up on legislation.

11. PAGE 10
7. References
Books
Beardwell, J. and Thompson, A. (2014) Human resource management: A contemporary
approach. United Kingdom: FT Publishing International.
Briscoe, D.R., Schuler, R.S., Tarique, I. and Schuler, all (2011) International human
resource management: Policies and practices for multinational enterprises. 4th edn. New
York, NY: Routledge.
Iles, P. and Zhang, C.B. (2013) International human resource management: A cross-
cultural and comparative approach. London: Chartered Institute of Personnel &
Development.
McCourt, W., McCourt, D.E. and Eldridge, D. (2003) Global human resource
management: Managing people in developing and transitional countries. Northampton,
MA: Edward Elgar Publishing.
Leatherbarrow, C. and Fletcher, J.A. (2014) Introduction to human resource
management: A guide to HR in practice. United Kingdom: Chartered Institute of
Personnel & Development.
Rees, C. and Edwards, T. (2010) International human resource management:
Globalization, international human resource management: Globalization, national
systems and multinational. 2nd edn. Harlow, England: Financial Times Prentice Hall.
Articles
Denisova- Schmidt, E. (2011) ‘Human Resource Management in Russia: Some unwritten
rules’, Department of Foreign Language Business Communication Vienna University of
Economics and Business (WU), Series One, Paper 8. Available at:
https://www.wu.ac.at/fileadmin/wu/d/bizcomm/04_Forschung/OnlinePapers/08-
denisova_endversion.pdf (Accessed: 5.04.2016)
Fey, C.F., Björkman, I. and Pavlovskaya, A. (2000) ‘The effect of human resource
management practices on firm performance in Russia’, The International Journal of
Human Resource Management, 11(1), pp. 1–18. Available at:
http://www.tandfonline.com/doi/abs/10.1080/095851900339963 (Accessed, 01.04.2016)
Gurkov, I. and Zelenova, O. (2011) ‘Human resource management in Russian
companies’, International Studies of Management and Organization, 41(4), pp. 65–78.

12. PAGE 11
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Rubens, K. (1995) ‘Changes in Russia: A challenge for HR’, Society for Human
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