5. An Eastern European HRM model?
In general, the HRM world is divided in three blocks: Europe, the United States and Japan. Strikingly, two of these groups are perhaps very large in economic power, but are also single countries. Inherently, cultural cohesion in these groups is much larger, because there are not divided by a difference in history, currency, politics or even religion as much as Europe. This means that even though Europe is seen as one of the three clusters in HRM, cultures and therefore management practices very widely. Therefore, due to the large differences between European countries, dealing with Europe as a whole is unjustified and will result in HRM policies that are either wrong for certain countries or get stuck at a too global level. This last option will render them unusable because they could be applied everywhere and don’t in effect give specific conclusions or implications. In order to effectively aid managers to develop and manage HRM policies, Europe can be divided into three blocks: Northwest Europe, Mediterranean Europe and Eastern Europe. Under Eastern Europe also fall Central European countries, such as Poland, Czech Republic and Hungary. Of course this division is highly subjective and can also be brought about in five areas or more, but one has to realize that on the one hand the areas’ HRM relevant characteristics must be coherent enough to be able to group and on the other hand, the division can not be realized in too great detail so that the different parts lose its significance in terms of economic and geographic size.
Researchers (e.g., Adler, Campbell & Laurent, 1989; Hofstede, 1980) have questioned the universal application of western HR theories and models outside its territory. Research reports that differences in cultures, values and attitudes impact the transferability of HR practices across national boundaries and that these factors must be accounted for when conducting business outside western countries. An possible solution for this problem is to apply western HRM practices to Eastern Europe requires a dual perspective. A dual perspective is a mix of both domestic and imported practices, and recognizes that management practices are influenced by – and bounded by – national culture. Using a dual approach, a customized HRM model integrating both personal and domestic experiences with imported, foreign experiences can be developed.
Based on all the given information, concluded can be that Eastern European HR practices can best be analyzed by examining the impact of the regional environment (e.g., political and economic climate, culture, education system) and imported western management practices on an organization’s business and human resource strategies. Such an approach is important as it can be used as a platform for local managers to address specific managerial issues, and for HR professionals and western managers to customize imported theory and practices so that cultural differences are recognized.
6. Conclusions
Moving from centrally planned to market economies has been a hard process for Eastern European countries, and cultural differences remain a big issue for multinationals to cope with. The first stage has been largely completed, with company ownership issues settled and business lines drawn. But organizations are dealing with immature labor markets where recruitment and training needs are hard to meet, and many HR practices simply do not translate either in language or culture.
The formulation of an Eastern European model in terms of Human Resource Management seems a useful one, since significant similarities can be found in the areas of history, culture and educational system. An important point however has to be made with regard to the dual economic development that has occurred and is still taking place in Eastern Europe. The central European countries seem the ones that are on their way to a true market economy the fastest. This is also supported by the fact that these countries are the most probable to enter the EU in the coming years. This gradual entry in the EU of Eastern European countries can cause for an even stronger division between countries in this area. Since acceptance by the EU has numerous benefits for western multinationals, the drive to invest in these countries rather than in ones with less economic development is even reinforced, thereby enlarging the gap between the countries. However, if the EU succeeds in enlarging Europe without delay and involving also the countries with less economic growth, this development can make Eastern Europe also stronger as a whole, thereby intensifying the band between these countries that has existed for so long.
Ideas for future research
In this paper Europe as a separate HRM area, is further divided in three parts. However, it might be necessary to make the borders between different European clusters even more distinctive. Further research is needed to explore to possibility to deal with Eastern European as a separate area of management. In terms of Human Resource Management, emphasis should be put on how to motivate and train Eastern European workers who are accustomed to systems that neither encouraged nor reinforced quality performance and change.
7. Bibliography
Books and articles:
+ Ardichvili, A; Cardozo, R. N. & Gasparishvili, A; Leadership styles and management practices of Russian entrepreneurs: Implications for transferability of western HRD interventions, Human Resource Development Quarterly, San Fransisco, Summer 1998
+ Beardwell, I. & Holden, L; Human Resource Management: A contemporary perspective, Pitman publishing, 1994
+ Finders, keepers, Business Europe, New York, October 21, 1998, Anonymous
+ Hofstede, G; Motivation, leadership, and organization: Do American theories apply abroad?, Organization Dynamics, 1980
+ Kiriazov, D; Sullivan, S. E; Tu, H. S; Business success in Eastern Europe: Understanding and customizing HRM, Business Horizons, Greenwich, Jan/Feb 2000
+ Kiriazov, D; Sullivan, S. E; Human Resource Management in Eastern Europe, Bowling Green State University, 1999
+ Schneider, S. C. D; Implications for learning: HRM in East-West European joint ventures, INSEAD organization studies, 1996
+ The East-West Win-Win Business Experience, The European Round Table of Industrialists, Brussels, 1999
+ Thirkell, J; Scase, R. & Vickerstaff, S; Labour relations and political change in Eastern Europe: A comparative perspective, UCL Press, 1995
+ Walsh, J; Countries must solve jobs crisis before EU accession, People Management, London, April 30, 1998
+ Welch, J; Older workers excluded as Eastern Europe modernizes, People Management, London, July 15, 1999
Internet:
+ http://www.kornferry.com/hr_eur.htm
+ http://www.ert.be