Similarities and differences of the HR practices in foreign-owned subsidiaries in the post-Soviet region in comparison to Central and Eastern European countries

Abstract

The purpose of this study is to determine interrelations between the characteristics of HRM in local subsidiaries in six focal countries in the light of different organizational variables: year of establishment, sector of MNC, mode of entry and origin of MNCs in selected post-Soviet counties in comparison to Central and Eastern European countries. We profile the HRM practices of almost 234 foreign owned subsidiaries located in Kyrgyzstan, Kazakhstan, Hungary, Russia, Slovakia and Poland. Using descriptive statistics, we present the general characteristics of the sample and then we use bivariate statistical analysis to test our hypotheses relating to the impact of different factors on the HR practice mix implemented in the subsidiaries of MNCs covered in our survey. The results support a contention that multinational companies following different HR management practices/approaches due to institutional histories. For example, in post-Soviet countries, HR departments have more centralized decision-making with tight control and the number of expatriates is lower when compared to the practices of firms in the CEE region.