Conference

The Authors Allen D. Engle, Sr. Jozsef Poór poor.jozsef@gtk.szie.hu allen.engle@eku.edu Eastern Kentucky University 011 BTC 521 Lancaster Avenue Richmond, Kentucky 40475-3102 USA Jozsef Poór poor.jozsef@gtk.szie.hu Szent István University Páter K.u.1. H-2100 Gödöllő, 4027.sz. Hungary Kinga Kerekes kinga.kerekes@econ.ubbcluj. .ro Monica Zaharie monica.zaharie@econ.ubbclui.ro Babeș-Bolyai University 400591 Cluj-Napoca str. Teodor Mihali 58-60 Romania

Human Resource Issues As Seen by HR Managers in MNEs in the CEE Region Engle, Poór, Kerekes and Zaharie 30 September 2016

I. Overview Issues for HRM in MNEs in CEE Context: CEEIRT Ongoing research since 2004

II. The Sample Slide 1 of 5 Five nations: Hungary Poland Romania Serbia Slovakia Collected between 2011 and 2013

II. The Sample Slide 2 of 5 Responses from 254 MNE subsidiaries Firms employ 245,000 persons in the five sampled countries Hungary 118 firms Poland 53 firms Romania 34 firms Serbia 19 firms Slovakia 30 firms

II. The Sample Slide 3 of 5 Parent firm origins: Germany 24% USA 19% France 9% Austria 7% Switzerland 4% Other emerging nations 6%

II. The Sample Slide 4 of 5 Greenfield origins 51% Acquisition of existing firm 49% Production 46% Trading 16% Services 35%

II. The Sample Slide 5 of 5 Self-reported strategic orientation: Growth / Expansion 59% Stability 37% Reduction 3% NOTE: In the 2008-2009 survey, some 23% of respondents described orientation as “Reduction”

III. HR Professional Profile Slide 1 of 3 Level of qualifications Field of specialization Current position description Seniority in firm

III. HR Professional Profile – Slide 2 of 3 Patterns Level of qualifications – most have college or university degrees Field of specialization – social sciences or engineering Current position description – 32% HR Management, Other 33% Seniority in firm – Split: 55% less than 5 years, 20% more than 10 years

III. HR Professional Profile – Slide 3 of 3 National Differences Qualifications in Slovakia – Bachelors and Masters Qualifications in Poland – Masters HR in Serbia – a social science degree HR in Poland – an engineering degree HR Managers – 62% with Masters, 6% with Ph.D. HR Staff – 41% with Masters HR Staff – less seniority Management Staff – more seniority

IV. HR Roles and Responsibilities – Global vs. Local Slide 1 of 3 Autonomy General Guidelines and Frameworks Detailed HR Models, Policies, and Procedures GLOBAL Centralized Tight Control

IV. HR Roles and Responsibilities Slide 2 of 3   Hungary % Poland % Romania % Serbia % Slovakia % Average % Provide autonomy both in decision-making and in implementation 19.8 16.0 24.1 5.6 30.0  19.8 Provide general guidelines and framework for HR actions 53.4 48.0 34.5 44.4 40.0  44.06 Provide detailed HR models, policies, procedures, and rules 20.7 24.0 23.3  32.6 Centralized decision-making with tight control 6.0 12.0 6.9 6.7  7.44

IV. HR Roles and Slide 3 of 3 Number of HR Professionals Significant correlation between autonomy reported and number of HR professionals – How to interpret? Greater number of HR professionals leads to increased autonomy or Greater autonomy leads to greater number of HR professionals Chicken or egg?

V. Key HR Professional Competencies – Slide 1 of 3 1st, Personal credibility 2nd, Foreign language skills 3rd, Ability to deliver HR services; e.g., Recruitment & Selection, Training & Development, and Performance Management Close cluster, no single major leader and, not or

V. Key HR Professional Competencies – Slide 2 of 3 Country Differences   Hungary Poland Romania Serbia Slovakia Mean Business knowledge (value chain, value creation) 2.83 3.04 2.87 3.29 2.55 Strategic contribution (managing culture, championing changes, strategic decisions) 3.16 3.06 3.05 2.41 Personal credibility (achieving results, effective relationships, communication skills) 3.25 3.54 3.27 3.51 HR services (recruitment, selection, training and development, performance management, etc.) 2.99 3.20 3.24 3.23 2.72 Usage of HRIS 2.52 2.78

V. Key HR Professional Competencies – Slide 3 of 3 Country Differences Overall, rather small “country” differences Poland and Romania vs. Slovakia: All competencies deemed lower in importance overall in Slovakia Romania vs. Hungary: HRIS is more important in Romania Still, small differences Language skills remain critical

VI. Conclusions Slide 1 of 2 This report is an initial step, a “profile in silhouette” Similarities outweigh national differences – why? Better, more complete nuanced descriptions of these key players in regional and global connectivity remain elusive, why?

VI. Conclusions Slide 1 of 2 Conclusions Slide 1B of 2 VI. Conclusions Slide 1 of 2 This report is an initial step, a “profile in silhouette” Similarities outweigh national differences – why? Better, more complete nuanced descriptions of these key players in regional and global connectivity remain elusive, why?

VI. Conclusions Slide 2 of 2 WHY? The traditional problems with voluntary regional consortia Access to the MNE players in the country and sample size variations Language differences and translations of descriptive questions, cross-cultural qualitative analysis We are asking important but complex and difficult questions

VI. Conclusions Slide 2B of 2 VI. Conclusions Slide 2 of 2 WHY? The traditional problems with voluntary regional consortia Access to the MNE players in the country and sample size variations Language differences and translations of descriptive questions, cross-cultural qualitative analysis We are asking important but complex and difficult questions Antonín Dvořák Franz Kafka Alexander Dubček

Thank you for your attention. Děkuji vám za pozornost. Any questions? Nějaké otázky? Antonín Dvořák Franz Kafka Alexander Dubček

Thank you for your attention. Děkuji vám za pozornost. Any questions? Nějaké otázky? Presentation by Ron Yoder