Workforce Development in a Post-Communist Culture, Romania
by
Oana Amaria
DePaul University, 25 E. Jackson Suite 1250, Chicago

Abstract: The mismanagement of resources and the failure to provide a satisfying standard of living for its people factored into the eventual collapse of communism (Culpan, 1995). Since the end of Communism in the Eastern Bloc, a large wave of Eastern European countries made the transition from centrally planned to emerging market economies. According to a survey conducted by Fortune Magazine, 67% of U.S. executives considered Eastern Europe as a major new market, comparable in importance to Western Europe in 20 years (Albert, 1990). Multinational corporations acknowledge the potential of the Romanian economy not only for its low labor costs, and skilled workforce, but also as a booming opportunity for foreign direct investment.

Unfortunately, a lack of management education, training, and organizational knowledge, as well as, the difficulty in cultivating an efficient and productive workforce with post-communist cultural baggage, are all factors slowing Eastern Europe’s transition into a market economy (Culpan, 1995). Management skills are the necessary missing commodity in emerging transitional economies. The long-lasting suppressive communist regime did not encourage development of such virtues as quality-consciousness, self-reliance, and work ethic (Culpan, 1995). Identifying successful management practices capable of motivating a Romanian workforce will facilitate the development of effective business ventures, creating appeal and accessibility for foreign investment; thus, resulting in a better standard of living for Romanian people.

Literature on Strategies of Human Resource Management (SHRM) indicates that multinationals use workforce development reforms as a way to reshape the corporate culture (Zupan and Kase, 2005). Yet, such reforms are not always applicable or adaptable to the Romanian organizational or social culture. Many local human resource managers (HRM) are not critical enough to criticize and observe what parts of the western models are applicable to Romanian work culture, and what parts just simply don’t apply (Zupan and Kase, 2005). Romania, as of yet, has no school in which the study of human resource management is an option. The lack of management skills and experience, as well as industry expertise prevents HRM from developing appropriate work development strategies from within the country.

Generalizability theory suggests that due to the significantly different context surrounding HR in the European Union, theories developed in the US do not generalize (Brewster, 1999). Zupan and Kase take the generalizability theory farther, questioning the extent to which such models would apply to the European transitional economies. Geert Hofstede’s, Cultural Dimensions model further discloses that cultural and national groupings affect the behavior of societies as they interact with one another (1980). Hofstede’s assessment through the five cultural dimensions: power distance, individualism, masculinity, uncertainty avoidance, and long term orientation provides further insight on the boundaries and relevance of cultures (Hofstede, 1980). Effective human resource management and workforce development must consist of practices knowledgeable of cross-cultural differences.

The author of this paper conducted primary research in Bucharest, Romania using structured, semi-formal interviews with human resource management experts working for multinational organizations in Romania. The analysis of the study is exploratory, assessing current workforce development challenges in Romania and evaluating the management strategies used to address them.

The objective of the study is to discover best practices in management strategies that motivate staff, build initiative, and identify future leaders. The crucial factor in this study will be the author’s ability to develop a best-practice model that trains and educates the Romanian workforce, creating a competent, culturally literate, and adaptable model for companies seeking a workforce in Romanian. As a result, Romania will be more appealing and accessible to foreign investment, creating economic opportunity and a better standard of living.

This paper will report on the author’s findings, identify challenges, disclose an appropriate workforce development model that addresses the specific economic and social needs of Romania, and suggest a methodology for the implementation and education of such models.

References:

Albert, M. (1990). ‘Wary hope on Eastern Europe’. Fortune, January 29, 125-126

Brewster, C. (1999) ‘Different Paradigms in Strategic HRM: Questions Raised by Comparative Research’. In Wright, P., Dyer, L.,Boudreau, J. and Milkovich, G. (eds) Research in Personnel and Human Resource Management: Strategic HRM in the 21st Century, Supplement 4. Greenwich, GT: JAI Press.

Culpan, R. and Kumar, B.N. (1995) ‘Transformation Management in Postcommunist Countries’, Westport, Connecticut; London: Quorum Books, 1-15

Hofstede, G. (1980) Culture’s Consequence: International Differences in Work-Related Values. Beverly Hills, CA: Sage.

Zupan, N. and Kase, R. (2005) “Strategic Human Resource Management in European Transition Economies: Building a Conceptual Model on the Case of Slovenia’, International Journal of Human Resource Management, 16(6): 882-906

Date received: October 13, 2007