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190 pages
p. 87 à 107
doi: en cours
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Veille sur l'auteur
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n° 1 2008/1
The Adaptation of Western Management Methodology to the Investigation of Personnel Management Practices in Russia
Liliane Bensahel CREPPEM, Espace Europe Institute, UPMF University Grenoble France Tamara Chamsoutdinova-Stieven CREPPEM, Espace Europe Institute, UPMF University Grenoble, France
The aim of this paper is to consider the changes in Russian personnel management practice with reference to western management methodology. At first appearance, the Russian labour sector is observing processes similar to those in Western countries; it is establishing contract rules and procedures, is increasing all types of flexible work patterns, and is developing social partnership institutions. At the same time, the transformational nature of these processes among countries in transition, is encountering difficulties and contradictions. The choice of western theoretical approaches for the analysis of Russian personnel management practice was based both on the study of Russian bibliography on the subject, and on empirical databases, communicated in interviews with personnel mangers in Russian organizations.
JEL: M12, J81, P31 Keywords : HRM practice, universal and contextual paradigms, types of flexible work patterns, criteria of HRM department’s activity.
JEL: M12, J81, P31 Keywords : HRM practice, universal and contextual paradigms, types of flexible work patterns, criteria of HRM department’s activity.
Introduction
As is well known, Russian society is presently in a process of transformation towards a market economy. Since the start of this transformation, radical changes have been seen in all spheres of society, including economic and managerial development. The significance of adopting western methodology for an investigation of the dynamics of Russian personnel management practices during the transition to a market economy stems from the fact that the western market management model has developed over a long period, during which the labour market and related infrastructures have also evolved. Thus, the evolution of the theoretical backdrop to personnel management in western countries is integral to its gradual development under market conditions over a long period of time, and by the need to satisfy concrete needs related to changing demands on personnel management techniques in organizations.
The more important components of Western management methodology, which can be adopted for the investigation and development of personnel management practice in Russia in this article will be analyzed as follows:
- The historical conception of HRM. HRM practice began to develop in western countries in the 1980s. The analysis of the differences between HRM today and earlier personnel management practices will illustrate its main features.
- Cross-comparative approach to personnel management investigation. The exploration of analytical schemes, as suggested by western specialists, for the analysis of societal variables in management practice is adapted to the consideration of the dynamics of personnel management in Russian organizations, taking into account overall and particular trends of this process.
- The adaptation of the concept of “socially sustainable” flexibility for the analysis of labour relation and personnel management practice in Russian organizations. From the beginning of the transitional period and the restructuring of Russian enterprises into market units, one can observe the spreading of all types of flexible work practices in the Russian labour market: part-time working, wage flexibility, functional flexibility. Such observations can serve as criteria for the evaluation of the dynamics of Russian labour relations.
- The application of the criteria developed in western management theory for the evaluation of business activity and effectiveness of Russian HRM departments.
- The competency-based approach to personnel management. The competency-based approach is inseparable from the HRM concept, because the evaluation of personnel as an important organizational resource, with all its skills and competences, is one of the main features of Human Resource management strategy as an element in the evaluation of personnel as variable costs, and management development theory based on personnel administration strategy.
HRM Concept and its Content
As demonstrated by numerous studies, the evolution of management practice had led to the replacement of simple personnel management practice with human resource management in most western countries by the 1980s. The main objectives of human resource management, in the opinion of those authors, were the achievement of the following primary goals (Guest, 1987, 1989):
- the integration of human resource issues into the strategic plans of firms;
- a high level of commitment;
- a high level of quality;
- flexibility in employee relations.
In pursuing these objectives in managerial practice, firms were able to adapt quickly and effectively to changes in the business environment through efficient use of all organizational resources, including personnel. Both from theoretical and practical points of view, it is important to clarify the difference between the notions of “personnel management” and “human resource management”. We follow here the view of authors who do not see these two notions as being opposed to each other but rather consider HRM to be a modern version of personnel management, characterized by the following basic features and strategies (see Table 1).
Table 1
The differences between personnel-management and human resource management practice
As it can be seen in Table 1, HRM, among its other features, is characterized by the evaluation of employees as one of the main organizational assets as a constituent of organizational resources. The implementation of a managerial concept such as HRM was a consequence of the logic of market developments and was rooted in the need for a more efficient utilization of organizational resources. The objective was first and foremost to maximize the competencies and skills of personnel, and thus to build a competency-based approach in organizational management strategies, including performance-related pay (PRP) and a reward management model (RMM.)
The replacement of personnel administration strategy through the adaptation of HRM in western countries can also be analyzed in terms of the development of the service sector and the need for the development of new personnel competencies in relation to such organizations. In the “construction” of the service process, employees are in close contact with customers, and the circulation of information in such organizations is fundamentally changing. These peculiarities and others comprise new challenges for organizational behaviour, personnel competence, performance and, consequently, personnel management strategies and techniques.
In the light of this, the question arises as to the possibility of the development in Russian organizations of human resource management strategies rather than simple personnel administration, which has been the norm in Russian firms up until now. This question, in turn, calls for an analysis of the peculiarities of the Russian societal context, as a determinant factor in the evolution of Russian personnel management practices towards human resource management in harmony with the development of a modern market economy.
The Universal and Contextual Paradigms as the Theoretical Backdrop for Cross-Comparative Investigations of Russian Personnel Management Practice
The analysis of differences related to changes in management concepts and approaches in western market societies must be based on a clarification of the societal circumstances that determine the development of modern personnel management techniques, and which comprise possible dimensions in the dynamics of Russian personnel management, taking into account the societal context of Russia. The study of the dynamics of personnel management in Russian organizations during the transition to a market economy is facilitated by the existence of two scientific paradigms developed within western managerial theory: the universal and the contextual (in Brewster, Mayrhofer, Morley eds., 2000, pp. 5-8).
The universal paradigm is essentially a nomothetic social science approach. It helps to clarify what constitutes the positive in HRM by coalescing views around the concept of high performance and the quality of work systems. The adoption of such approaches to the analysis of the dynamics of personnel management in Russian organizations, because of the nomothetic orientation, leads to the study of positive and negative tendencies in this dynamic – what in Russian personnel management innovations can be evaluated as modernization, and what can be evaluated as a transition process. The contextual paradigm, widely used in western science, is idiographic, oriented towards clarifying what in personnel management practice is contextually unique, and the reasons why. It helps to determine what is different within HRM in various societal contexts. It is assumed that societies, governments or regions as well as firms can have HRM practices and policies.
The study of personnel management problems on the basis of universal and contextual paradigms took root in world management theory in 1980, at the same time as the notion of HRM was formed. It should be pointed out that the development of these research paradigms cannot be separated from the formulation of cross-societal, cross-national and cross-cultural traditions in the field of personnel management. Thus the investigation of the possibility of adapting HRM practice as a kind of manifestation of universal tendencies in relation to the dynamics of Russian personnel management practice requires the analysis of the peculiarities of the Russian societal context, determining both universal and particular tendencies concerning these dynamics (see table 2).
As it can be seen in table 2, the difficulties in the transformation of social institutions in Russian society determine the complexity and contradictions of the shaping of the Russian personnel management model. Such difficulties can be explained to a considerable extent by the level of ignorance of the peculiarities of the Russian societal context in transition politics. This in turn is related to the prevalence of neo-liberal ideas during most of the transformation period in Russia. That is why the development of contextual paradigms as well as universal ones in Russian management theory will be consequent not only on the adaptation of modern management practice but also on the overcoming of contradictions in the shaping of the Russian personnel management model.
Table 2
Difficulties in transformation of the Russian societal context and its influence on the process of the adaptation of modern personnel management practice in Russian organizations
The analysis of the peculiarities of the Russian societal context, which determine the dynamics of Russian personnel management practice by the application of cross-comparative methodology, demonstrates that the Russian case of transformational development so far stops short of the implementation of HRM strategy in Russian organizations. Difficulties in the establishment of market institutions in Russia are expressed in different paradoxical combinations taking place in Russian society, including:
- the attempts at implementation of market competitiveness in Russian society, from one side, and the prevailing spirit of personal relationships in business communications in disfavor of efficiency (“rule of men”, instead “rule of law”), from the other side (Rosefielde, 2002);
- the trend of labour mobility in the Russian labour market up to the present is disadvantaged by the Soviet heritage in the social sphere, including difficulties in obtaining home loans and territorial mobility;
- the durability of the Soviet system in Russia in comparison with other post-socialist countries;
- the peculiarities of the geopolitical situation of Russia, related to:
- The remoteness of the Russian geopolitical situation from western market economies, adversely affecting the development of market institutions in Russian society;
- The central geopolitical location of Russia between Europe and Asia, which determines the complexity and the contradictions in the process of shaping the Russian personnel management model.
Theoretical Review of the Flexibility Concept and its Usefulness for the Study of Russian Personnel Management Practice
The adoption of the concept of flexibility in describing trends in the development of a market personnel management model in Russia is based on the point that, in spite of using this concept in the field of HRM, it has not overcome certain weaknesses (Gladstone, 1992). The concept reflects numerical types of flexibility, which characterize certain possibilities for enterprises to adjust rapidly to the problems, as related to the employment politics in industrialized market economies.
In terms of economic theories of labour markets, Fine, 1998 (p. 77) observes that the debate over flexibility in labour markets:
- concerns the functioning of the economic system as a whole, including interactions between micro- and macro-levels and between the labour market and other markets;
- ranges over the relationship between the economy and socio-economic relations more generally, incorporating industrial relations, the State and other institutions;
- follows a descriptive approach to flexibility that has served both as a terminological device for dealing with a chaotic array of empirical material and as a means of replicating theoretical debates over how the economy works without contributing any new analytical content.
It is possible to make use of these main points in the debates over flexibility with reference to changes in personnel management practice in Russian organizations in terms of two perspectives: in a broader and a narrower sense. The first involves the study of personnel management in transitional countries in connection with such societal changes as: the evolution of the firm as a market institution, and the analysis of contextual circumstances related to the personnel management system in a specific societal environment.
The adoption of the concept of flexibility in relation to the problems enumerated by western authors can be explained by the need to observe the labour sphere, taking into account non-market institutions as constituting or reflecting sources of flexibility: for instance, labour legislation, social partnership institutions, organizational culture, the type of organizational vision prevailing in society, etc. Contrary to the concept of flexibility, institutional analysis confronts institutions directly (Fine, 1998, p. 73). The use of a narrower perspective of the concept of flexibility in relation to Russian management leads to clarification of the reasons for the evolution of personnel management theory and practice with regard to the evolution in the Russian labor sphere, which in turn determine the adaptation of numerous types of flexible work practices. The adoption of the concept of flexibility for the study of personnel management problems in the two senses mentioned above presupposes the analysis of the flexibility factors suggested by the OECD research group at the beginning of the adoption of such a concept in western social science within the frame of the study of employment relations.
The factors determining the diffusion of flexible work practices in the labour market were divided by this research group into six main categories (OECD, 1986, Labor market flexibility, Paris):
- conditions of employment, including job protection and various types of labour contract;
- labour costs, including level of wages, wage differentiation and non-wage labour costs;
- work practices and patterns of work, including arrangements for working time, working environment and the organization of work;
- rules and regulations related to the labour market, including taxation and regulations concerning small businesses;
- education and training.
As it can be seen from these factors, flexibility in employment relations is a complex social phenomenon connected to processes of modernization, technology, demographic and cultural changes etc.
In spite of the current validity of the analysis of the flexibility concept in western and Russian economic and management theory, the results of these studies differ. In western economic and management theory the concept is often connected to and, consequently used as, the equivalent of liberalization and deregulation in the labour sphere. However at the same time, in western management, problems are being posed in terms of such internal dimensions of flexible work practice studies as:
- The analysis of management flexibility at the level of organizational activity (Everaere, 1997);
- The exploration of flexible work patterns and their typology (Atkinson., 1984, Bamber, 1992);
- The study of the link between labour flexibility and HRM strategies (Bluton, Morris, 1992, Maine, Tregaskis, Brewster, 2000);
- The analysis of the social regulation of flexibility in the labour sphere and the adoption of the concept of “socially sustainable flexibility” (Ozaki, 1999; Valenduc, Vendramine, 2000, 2002; Euzeby et al., 2003).
It should be pointed out that some Russian specialists working on labour market problems are also using the concepts of flexibility and mobility for the analysis of the evolution of the Russian labour market (Kapelushnikov, 2001; Kosmarskaya, 2001). However, they use these notions mainly for describing different adoptive measures and mobility taking place in the Russian labour market without an analysis of the connection between flexible work practices and the peculiarities of personnel management functions in Russian organizations; these tend to be rooted in the adoptive measures mentioned above. In our opinion, the study of Russian personnel management practice requires an adaptation of the concept of flexibility, taking into account:
- the complexity of the transformation process in Russian society and its flexible nature, which determines the evolution of management techniques and culture in Russian organizations;
- the dispersion throughout the Russian labour sphere of all kinds of flexible work practices, which are taking place in western countries but which differ, in terms of reasons and the balance of advantages and disadvantages, for employers and employees in Russia and in western countries respectively;
- the need to study the flexible work practices which are widespread in Russia, taking into account their influence on the quality of life and work of employees, in other words by adopting the concept of “socially sustainable flexibility” suggested by western specialists for researching flexibility in the labour sphere (see Table 3).
Table 3
Advantages/disadvantages of flexible work patterns for employers and employees
Application of the Criteria Developed in Western Management Theory for the Evaluation of Business Activity and the Effectiveness of Russian HRM Departments
The development of personnel management culture can be analyzed taking into account different features, including such important ones as the efficiency of human resource management departments’ activity and their influence on organizational performance. In the opinion of the specialists, the influence of HRM department is key to the existence and nature of HRM systems in organizations, and thus indirectly determines outcomes from HRM (Brewster and Hegewisch, 1993; Galang and Ferris, 1996). So, in spite of the dependence of HRM upon various organizational and environmental factors, the functioning of HRM departments and their efficiency can be evaluated as one of the features which characterize the trend of the dynamics of personnel management practice in organizations (see figure 1).
Figure 1
Determinants and consequences of HRM
Source: Galang, Ferris (1996), p. 553.
As is demonstrated in worldwide management practice, the differences between the HR department’s role in various organizations can be considered as an important indicator of the efficiency of personnel management practice. The specialists working on personnel management problems point out, that although a direct connection between outcomes from HRM and HRM departments’ activities is absent, it can be evaluated according to hierarchical conditions within the enterprise, which determine the output of HRM departments. (Tsui, Gomez-Mejia, 1988):
- the existence of the necessary power for such departments in order to pursue the personnel management function within the organization;
- the existence of personnel management programs, as correctly elaborated by HRM departments.
Taking into account these two main power conditions for the functioning of HRM departments, it is possible to distinguish the differences in their functional and organizational effectiveness. The difference between the outlined indexes of HRM departments’ activity is analyzed by western specialists in relation to two types of HR effectiveness: functional and organizational. Functional HR effectiveness is related to the operational activity of specialists of HR management departments. As for organizational HR effectiveness, it is rooted both in the activity of the specialists of HRM departments and the activity of line- and top-managers. Consequently, HRM effectiveness can be observed based on two levels of analysis:
- taking into consideration the implementation of modern HRM technologies in organizations by HRM departments, including effective acquisition, deployment and utilization of human resources;
- the level of organization existing, focusing attention on the activity of line managers and organizational outcomes, including profit growth and the improvement of organizational performance.
Such analysis is important not only from the theoretical point of view. The investigation of trends in HRM departments functioning in Russian organizations, and their effectiveness in relation to western investigations, can serve as a theoretical framework for practical recommendation concerning the improvement of Russian HRM departments’ activity (see table 4.)
Table 4
The criteria of HRM departments’ efficiency and their investigation in western science
As it can be seen from table 3, the investigations of HRM departments’ efficiency in western science have helped to shape the development of research. As has been pointed out, in spite of the indirect connection between HRM outcomes and the business activity of HRM departments, the efficiency of their functioning is one of the main indicators of personnel management culture and its level of development.
The criteria of HRM departments’ efficiency, as set out in this table, can be used both for the investigation of changes in Russian personnel management departments’ activity, and for the practical application of such criteria in Russian organizations. Because of the short period of transition, Russian investigations related to researching problems in the functional efficiency of personnel management departments and the criteria for their measurement are few and far between.
In Russian management theory up to the present the research tradition of the investigation of personnel management practice, based on an integrated approach to the evaluation of HRM department’s efficiency as a combination of functional and organizational efficiency, has not been applied. Russian specialists working in the field of personnel management problems have more actively considered the indices of functional HR effectiveness. This situation can be explained by difficulties encountered by Russian enterprises in functioning as market units, determined to a considerable extent by the macro-economic situation. Generally speaking, HR effectiveness in Russian organizations is not evaluated, taking into account such main economic indices of organizational business activity as profits, sales and growth of production. That is why Russian organizations up to the present are watching the trend towards formal replacement of the title of management of employees departments from “otdel kadrov” to personnel management departments, without transforming their organizational status or adopting the efficiency criteria of such departments based on market values.
These difficulties in the transformation of the organizational status of Russian personnel management departments in relation to the applications observed in table 3’s criteria of HRM departments’ efficiency are accompanied by certain negative trends in their business activity, including:
- the lack in most Russian enterprises of clear, long-term personnel management programs connected to and reflecting organizational strategies;
- the formal replacement of the title of employee management departments from “otdel kadrov” to personnel management departments;
- the low degree of participation of line- and top-managers in the planning and implementation of HRM strategies in Russian organizations;
- partial transformation of personnel management functions without more systematic or radical innovations. Most personnel management functions in Russian enterprises during the transition period underwent change to some extent; however the implementation of new techniques in personnel recruitment in Russian organizations is rarely associated with a competency-based approach. Personnel motivation can be achieved without the adaptation of modern techniques of personnel appraisal. Personnel training can be applied without the implementation of a matrix of career development, etc.
In spite of the difficulties in transformational processes in Russia, nowadays some Russian organizations are implementing personnel management innovations. These innovations concern the changing of the content of such basic personnel management functions as appraisal of personnel performance, training and development programs, and the implementation of various types of personnel motivation. Such innovations connect with, and depend in turn on, the implementation of criteria for the efficiency of personnel management departments and consequently, the transformation of their organizational status.
Competency-Based Approach to Personnel Management
As it was demonstrated above, the replacement of personnel management practice by HRM practice during the 1980s in developed western countries was based on the evaluation of employees as one of the main organizational assets along with other organizational resources. Management by competences is considered as being both a theoretical and practical tool for such evaluation. The analysis of competency-based approach as one of the most important HRM strategies in a market economy can be performed at micro- and macro-social levels of analysis. The first level of analysis demonstrates the significance of competency-based approach by consideration of its importance for:
- the development of achievement motivation of personnel, i.e. self-realization, self-identification (individual level);
- influence on the overall efficiency of organizational performance and the implementation of modern technologies at the level of the firm.
That is why the improvement of personnel performance, using different Human Resources Technologies is now being evaluated as one of the strategic variables of the effectiveness of the firm (Stolovitch, Keeps, 1992). It must be pointed out that performance management itself is rooted in a competency-based background, including the evaluation of employees as one of the most important assets of the organization.
The conclusion that the competency-based approach is one of the basic features of personnel management in a market economy can be confirmed also at the macro-social level of analysis, by reference to the following arguments:
- this approach invokes the connection between education received outside the firm and that acquired in the work situation;
- this approach accents the importance of implementation of such basic personnel management functions in organizations as personnel appraisal, motivation, training and development;
- this approach raises questions related to the portability or transferability of competences at the level of the branch, the organization, or countries.
The competency-based approach in western management theory has been shaped in the research tradition. This can be demonstrated by enumerating the various dimensions in the investigations relating to the competency-based problem field, which can be grouped as follows:
- the analysis of developing economies and societies, based on knowledge and qualifications, and the investigation of the development of labour markets, human capital and employment policies in such societies (Gladstone, Wheeler, Roijot (eds), 1992; Bandt, 1999; Alcouff, Kammoun, 2000; Fourcade, 2002);
- the development of competency-based theory in relation to strategic human resources management and implementation in the personnel-management sector of such notions as:
- “strategies of acquisition, stimulation and development of competences” (Besseyre des Horts, 1988; Gazier B., 1993);
- “the management of organization by mobilization of competences” (Bernard, 1992, in Mitrani et al (eds);
- “the provisional management of employment and competences” (Citeau, 1994; Gilbert, Parlier, 2003, in Weiss (ed.);
- the investigation of implementation of the competency-based approach in basic personnel management functions such as recruiting, performance management, appraisal, motivation. (Resources humaines, 2003, in D. Weiss (ed.); Personnel and its competences, 1992, in Mitrani et al (eds); Le Berre, Castagnos, 2000; Boyer, 2003).
- The analysis of content and typology of competences (Robertson, 1992, in Boam, Sparrow (eds); Nordhaug, (1993); Alcouffe, Kammoun, 2000).
- The exploration of problems related to the competency-based approach in connection with the development of business services, managing people in a Team-Quality Management (TQM) context (Rubalcaba-Bermejo, 1999; De Bandt, Gadrey, 1994; Wilkinson, 1999, in Dale (ed.)).
As is known, Russia, like some other post-socialist countries, is characterized by a high level of human capital investment inherited from the Soviet period. This ought to be a comparative advantage in the development of skill-intensive manufacturing and in high-tech goods production in transitional countries, including Russia. But in reality, as was demonstrated by specialists working in the area of human capital development in Russia, “a significant endowment of human capital creates the possibility but not the certainty of sustainable economic growth” (Algieri B., 2006, p. 103).
In spite of the importance and the potential advantages for economic growth which have been mentioned, the lack of priorities concerning human capital development in Russian society, has been present since the beginning of the transition period and continues to exert a negative influence up to the present. In the analysis of the reasons for this, regarding human capital development in Russia, the chief area of investigation by specialists is its macro-social nature, that can be explained by the importance of institutional restructuring inherent in the condition of transitional societies. Among such reasons being enumerated, are for example: the lack of a social capital approach to economic development; the weakening of state regulation of social development in favour of a neo-liberal vision of the transformation processes; the prevalence of economic development oriented to the exploitation of natural resources in contrast to the development of the human capital extensive sector; the decline in government expenditures in Russia on education, health care, culture, basic science, R&D, etc.
As for investigation of the determinants of the lack of human capital development at Russian micro- and mezzo-social (organizational) level of analysis, including the problems of management by competencies, relatively few data are available. It should be pointed out that Russian experts are nevertheless continuing to observe the processes which might contribute to human capital development. For example, the commercialization of the Soviet education system, which began at the start of transition, was accompanied by a growth of the Russian population possessing higher education diplomas. According to this index Russia continues to lead among developed nations. The analysis of professional and educational structures based on formal characteristics, shows that the Russian labour force continues to be one of the most qualified in the world.
Despite this, however, the occupational structure of the Russian labour force testifies that there is a tendency towards insufficient utilization of the qualifications of the Russian work force. For example, employees whose educational potential is being used insufficiently, include 10% of employees in Russian service industries, 20% of employees in the agricultural sector and about 40% of non-specified employees (Kapelushnikov R., 2006, p. 33). So, this database offers an argument in favour of the application of the competency-based approach (management by competencies) in Russian organizations.
The limitations concerning the application of human capital in Russia are echoed by other databases, including ones that refer directly to the possibilities of utilization within Russia of educational, professional, informational/cultural, and social capital. The probability of efficient utilization of each such resource in Russia after ten years of market reform does not even reach 50% (Avraamova E., 2002, p. 59). Though this database has no direct bearing on management by competencies in Russian organizations, it does demonstrate the huge importance of such disciplines.
The analysis of the nature of the restructuring of the Russian labour market during transition serves to explain the peculiarity of its segmentation, the factual disappearance of internal markets in favour of external ones, as analysed by specialists in the theory of segmentation of the labour market, developed by M. Piore and P. Doeringer (1971). That is why the development of the internal labour market in Russian organizations based on management by competencies, pay-related performance, personal career development and related aspects will follow on from the fuller understanding and application of human capital utilization in Russia.
Conclusion
The investigation of personnel management problems in Russia stems from a recognition of the importance of the development of social science, based on modern research methodology, and the necessity of overcoming the still surviving tradition of economic determinism and technocratic approach to the development and investigation of social phenomena, including management culture. It is known that beginning of the crisis in the Taylorian system of work organization in western countries was inseparable from the development of motivational, cultural and participative approaches to the regulation of employment relations. These approaches were developed by western specialists, working on problems of social science, including sociology and the economy of organizations, organizational behaviour, psychology, etc. The development of such a theoretical backdrop for the improvement of employment relations was one of the most
important reasons underlying crisis management during the transition period, and the permanent replacement of the Taylorian system by a set of alternative disciplines. These developments were accompanied by the strengthening of human orientation in management, and an increase in the vision of organizational business activity as part of a complex social system in western management practice and theory.
The Soviet management system was unable to overcome the excessively bureaucratic nature of the regulation of social relations that was still in place at the beginning of transition in Russia. This is explained, apart from other reasons, by the domination in Soviet science of the tradition of economic determinism accompanied by a technocratic approach to the investigation of social phenomena (Bherer, 1982). In Russian economic and management theory, the market theory of the firm and the theory of the labour market are developing rapidly, and are fast replacing the Soviet research tradition for the investigation of economic phenomena, including labour and employment relations. Also developing rapidly are the new subdivisions of management theory, including financial, innovative, strategic and personnel management. Despite considerable numbers of publications and investigations in Russian personnel management theory certain things remain unavoidable:
- the persistence of universal research paradigms in investigation of personnel-management problems in Russian organizations;
- the analysis of personnel management problems without adaptation to the investigation of agency theory, transaction cost theory, or contract theory, which are characterizing by emphasis on the social nature of firms and enterprises; these factors are especially important for the analysis of problems related to the managerial dynamics in societies undergoing transition.
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