P3:Competence of Human Resource Management Vera Minina, Elena Dmitrienko and Anastasia Krupskaya

STROI Business Network project P3: Competence of Human Resource Management The Object of the Research – Finnish companies which belong to STROI business network and operate on Russian market. The Subject of the Research: 1) the features of HRM in Finnish companies belonged to STROI business network; 2) core employees competences required for success.

The purposes of the Research  To reveal differences in Russian and Finnish approaches to HRM practices;  To design Core Employees Profile (CEP);  To work out the recommendations concerning HR practices improvement.

Data base  10 Finnish companies which belong to STROI business network and operate on Russian market  17 semi-structured interviews CEO5 HR managers6 Linier managers6

Differences in Russian and Finnish HR and HRM practices Results of empirical research

Differences in HR FeaturesRussian context Finnish context Employees’ competences: Decision-making skills, Willingness to take responsibility in decision- making Decision-making practices: Long term orientation Thorough process Speed of decision-making - high + low Discipline on the work place Using working time for private matters Importance of following project schedule

The main incentives and their impact on employees IncentivesRussiaFinland Financial Rewording for outstanding performancehigh Covering educational feeshighlow Medical insurancehighlow Pension programslowhigh Support in housing loan and credithighlow Non financial Work-life balance policylowhigh Participating in decision-making process (for some groups of staff) high Best employee recognition (from time to time)high

Differences in HRM FeaturesRussian context Finnish context Similar recruiting practices++ Managing adaptation process Detailed program of adaptation Coach support Colleagues support Reword system: Clarity of parent company reward systemlowhigh

Differences in HRM FeaturesRussian context Finnish context Similar training programs++ Employees` development: Attitude to development discussion Development discussion procedure pressure assessment opportunities support

HRM alternatives for Finnish companies in Russia: 1.To accept and follow local practices in HRM 2.To adopt Finnish HRM practices in Russian environment 3.To develop and introduce different or mixed HRM system, based on results of empirical research

Core Employees Profile (CEP) Results of empirical research

Core Employees (CE) focus  Lack of attention to identification of employees who are responsible for organizational competences  Focus on people who are involved in core business  Identification those who have the ability to transform unique and valuable knowledge into organisational competitive advantage  CE  CE need to be identified through required abilities (profile)

CE abilities: quotations from interviews Learning do not afraid of responsibility and decision- making Competence strategic knowledge and multiple skills Integration transmit the feeling of company high level of social or communicative skills, they create partnerships and networks Reflection constantly monitor client’s situation Trust whom you can really trust

CE Profile

CE profile: identification  Do abilities mentioned before have to be developed equally?  CE Profile – the set of abilities that are in the certain proportion  Who defines CE Profile and how?   Who – individuals from three different fields  How – different factors and context

Three fields of CE identification Social Professional Organizational CE

HRM model based on CE focus  CE makes considerable contribution in business development  CE focus is valuable for HRM  CE abilities could be managed  Different CE Profiles could be developed based on the abilities  There is no universal CE Profile  People from three fields of CEs’ identification should be involved in CE Profile development

Recommendations for Network development  Social skills are crucial for network development  Employees involved in network relations should be social competent  Social competence includes integration ability and ability in building and maintaining trust  Organisations involved in network should pay enough attention to these abilities development

Thank you for your attention! P3:Competence of Human Resource Management Vera Minina, Elena Dmitrienko and Anastasia Krupskaya