Transcript Employment Relations in Russia

Employment Relations
in Russia
LIR 554: COMPARATIVE EMPLOYMENT RELATIONS
10/07/2008
Chinweoke Ofuonye
Deirdre Darnall
Emmy Yimei Lin
Kerri Kristich
U.S.S.R
THE RUSSIAN FEDERATION
•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
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
1993
small enterprises
all enterprises
15%
33%
67%
85%
State Owned
Private Owned
State Owned
Private 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 &
99% / 6.22% ↓
Unemployment rates
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