**3. Study of sociocultural diversity management practices in the Russian Federation, Kazakhstan and Belorussia**

A study of administrative practices in the organizations of the Russian Federation, Kazakhstan and Belorussia experiencing sociocultural diversity was held in the first half of 2017. The researchers used the methodological approach proposed by Professor Dvořáková [14]. The methods included the accumulation of data and information using multiple methods: analyzing scientific publications and conducting semi-structured interviews and observation. The data included both historical and present-day information about the given social sphere. The reasons for using specified methods are connected with studying the social phenomena: national culture, values, behavior and HR management practices. Thus, the collection, selection and analysis done by using the methods of interpretation (reveal ideas (meanings) generated in human economic activity show the sphere for their implementation) provide the basis for achieving visible results and developing recommendations. These methods are used in the in-depth analysis of data obtained from semi-structured interviews with managers and HR specialists to explore approaches and practices in the field of diversity management in the national cultural environment as in the business model.

The object of the research on diversity management practices in the Russian Federation, Kazakhstan and Belorussia was the 74 organizations involved in the three types of activity that provide employment to more than 80% foreign workers (**Table 2**):


If respondents from Kazakhstan and Belorussia were all countries location, than such from Russian Federation were locate in Sverdlovsk oblast. Sverdlovsk oblast is traditionally an industrial region with diversified economy and developed labor market. Structure and dynamics of Sverdlovsk oblast labor market are such as structure and dynamics of Russian labor market. In terms of ethnic diversity, Sverdlovsk oblast holds one of the leading positions in Russia. There are 160 ethnic groups living in the region. According to the all-Russian census of 2010, the Russians make up the significant majority in the population of the Sverdlovsk oblast (3,684,843 people)—85.7% of all the local population, that is, 90.6% of those people who identified their ethnicity. The second largest ethnic community in the region is the Tatars (143,803 people)—3.3% of all the local population in the region. The third largest ethnic community is the Ukrainians (35,563 people)—0.8% of all the local population in the region. The Bashkirs make up the fourth largest community. There are 31,181 representatives of this ethnic group living in the Sverdlovsk oblast. The Mari people take the fifth position; their number is 23,801 people. These are followed by the Azerbaijani, Udmurts, Belarusians, Armenians, Tajiks, Chuvashes, Kirghiz, Mordovians, Jewish, Germans and others.

Three cultures defined the ethnocultural distinctness of the Sverdlovsk oblast—Finno-Ugric (Mansi, Udmurts, Mari, Mordovians), Turkic (Tatars, Bashkirs) and Slavic (Russians, Ukrainians, Belarusians). Besides, Sverdlovsk oblast is one of the multireligious regions of the Russian federation. As for 01.01.2016, there are 770 religious organizations which represent 20 world religious denominations. There are also more than 100 ethnocultural organizations and 22 ethnocultural autonomies. From 2011 to 2014, there was an annual growth in the number of non-resident labor force in the Sverdlovsk oblast. So in 2011, the number of non-resident labor force was 61,757, and in 2014 this figure was 80,169 (an increase of 129.8%). There was such an increase due to the growing number of non-residents working in the Sverdlovsk oblast on the patents (from 16,133 people in 2012 to 56,446 people in 2014) (**Table 1**).

**3. Study of sociocultural diversity management practices in the** 

A study of administrative practices in the organizations of the Russian Federation, Kazakhstan and Belorussia experiencing sociocultural diversity was held in the first half of 2017. The researchers used the methodological approach proposed by Professor Dvořáková [14]. The methods included the accumulation of data and information using multiple methods: analyzing scientific publications and conducting semi-structured interviews and observation. The data included both historical and present-day information about the given social sphere. The reasons for using specified methods are connected with studying the social phenomena: national culture, values, behavior and HR management practices. Thus, the collection, selection and analysis done by using the methods of interpretation (reveal ideas (meanings) generated in human economic activity show the sphere for their implementation) provide the basis for achieving visible results and developing recommendations. These methods are used in the in-depth analysis of data obtained from semi-structured interviews with managers and HR specialists to explore approaches and practices in the field of diversity management in the

The object of the research on diversity management practices in the Russian Federation, Kazakhstan and Belorussia was the 74 organizations involved in the three types of activity

• Wholesale and retail trade—26 organizations (number of employees over 200 people)

• Other community, social and personal services—10 organizations (number of employees over

If respondents from Kazakhstan and Belorussia were all countries location, than such from Russian Federation were locate in Sverdlovsk oblast. Sverdlovsk oblast is traditionally an industrial region with diversified economy and developed labor market. Structure and dynamics of Sverdlovsk oblast labor market are such as structure and dynamics of Russian labor market. In terms of ethnic diversity, Sverdlovsk oblast holds one of the leading positions in Russia. There are 160 ethnic groups living in the region. According to the all-Russian census of 2010, the Russians make up the significant majority in the population of the Sverdlovsk oblast (3,684,843 people)—85.7% of all the local population, that is, 90.6% of those people who identified their ethnicity. The second largest ethnic community in the region is the Tatars (143,803 people)—3.3% of all the local population in the region. The third largest ethnic community is the Ukrainians (35,563 people)—0.8% of all the local population in the region. The Bashkirs make up the fourth largest community. There are 31,181 representatives of this ethnic group living in the Sverdlovsk oblast. The Mari people take the fifth position; their number is 23,801 people. These are followed by the Azerbaijani, Udmurts, Belarusians, Armenians,

**Russian Federation, Kazakhstan and Belorussia**

76 Human Capital and Competences in Project Management

national cultural environment as in the business model.

200 people)

that provide employment to more than 80% foreign workers (**Table 2**):

Tajiks, Chuvashes, Kirghiz, Mordovians, Jewish, Germans and others.

• Manufacturing—14 organizations (number of employees over 1000 people)

• Construction—24 organizations (number of employees over 100 people)

In 2015, the number of patents granted to work decreased to 46,000 (by 28%). But it should be taken into account that in 2015–2016 the previously granted work permits are still valid: some categories of people continue working in Russia on permission. There are also some people who chose not to formalize their employment because of the cost of procedure (13.2 thousand roubles) and problems with law. Taking into account all the above-mentioned categories of people, the Federal Immigration Service Office in the Sverdlovsk oblast registered 313,621 foreign citizens in 2015 (337,955 in 2014). Mostly, these are citizens of Tajikistan, Uzbekistan, Kyrgyzstan, Vietnam and China.

The respondents were 82 line managers and HR managers who filled in questionnaires or took part in semi-structured interviews on the questionnaire. The questionnaire aims to identify HR management practices which are used when the staff consists of foreign workers and native citizens from ethnic and religious minorities. Besides, it measures managerial competences in the field of diversity management and cross-cultural management, as well as understanding the need to acquire (deepen) these competencies (**Table 2**).

The study showed prevailing practices of recruiting citizens of Russia coming from ethnic and religious minorities for jobs that require both unskilled and highly skilled labors. One hundred percent of employers confirmed the use of such practices. None of the respondents mentioned the cases of any conflicts related to sociocultural differences between the citizens of the Russian Federation.

The results of our study are consistent with the results of a study conducted by the centre for the promotion of ethnocultural associations under the Urals State Mining University in 2012. The research theme was 'The attitude of members of ethnic and cultural public associations to the development of ethno-religious relations in the Sverdlovsk oblast'. Of the 388 respondents representing 70 ethnic and cultural associations of the Sverdlovsk oblast, 94% of respondents assessed the level of relations between the representatives of different peoples in the Sverdlovsk oblast as 'satisfactory', 'good' or 'very good' [15].

The results of the studies conducted in the Russian Federation, Kazakhstan and Belorussia differ significantly from the results of the study on diversity management practices organized by the group of Professor Korgova in the republics of the North Caucasus. The study revealed that 80% of organizations work under multinational management teams. However, 92% of CEOs prefer to choose the management team and employees representing one ethnicity [16].


Source: http://www.sznural.ru/content/статистика%20и%20аналитика.

**Table 1.** Dynamics in the number of foreign workers who received work permit or a patent in the Sverdlovsk oblast in 2011–2014.

Meanwhile, the majority of managers and HR specialists (90%) do not consider it necessary to address the special social and cultural competences in managing employees who are the citizens of the Russian Federation representing ethnic and religious minorities. This result may be explained by insignificant differences in labor and consumer behavior of the Russian Federation citizens representing different ethnic and religious groups.


**Table 2.** Questions for analyzing the diversity management practices in the Russian Federation, Kazakhstan and Belorussia.

The situation with foreign workers is radically different: 100% of respondents recruit foreign workers for unskilled jobs, only 30% hire foreign workers for skilled jobs and none of the respondents confirmed hiring foreign workers for highly skilled jobs.

Sixty-seven percent of respondents spoke about the past or present conflicts between managers and foreign employees as well as conflicts between foreign workers and nationals of the Russian Federation caused by sociocultural differences of the foreign workers. This result is also consistent with the research data of the centre for the promotion of ethnocultural associations under the Urals State Mining University, in which 58% of respondents assessed the impact of the inflow of migrant workers on ethnic and confessional relations as 'increasing tension' and 'bringing a lot of harm'.

However, 54% of respondents noted taking into account particular social and cultural competencies when deciding to employ foreign workers. The proportion of foreign workers employed in construction was 80%, and the proportion of those employed in sales was 67%. Foreign workers employed in the utilities and manufacturing industries accounted for less than 50%.

Meanwhile, the majority of managers and HR specialists (90%) do not consider it necessary to address the special social and cultural competences in managing employees who are the citizens of the Russian Federation representing ethnic and religious minorities. This result may be explained by insignificant differences in labor and consumer behavior of the Russian

**Table 1.** Dynamics in the number of foreign workers who received work permit or a patent in the Sverdlovsk oblast in

Federation citizens representing different ethnic and religious groups.

**Indicator All foreign workers and people/share of** 

78 Human Capital and Competences in Project Management

61,757 (2.79)

2545 (2.45)

(1.26)

(10.04)

13,601 (3.84)

2647 (1.24)

6871 (10.16)

Source: http://www.sznural.ru/content/статистика%20и%20аналитика.

Financial activities 3

Education — — 17

Mining — — 69

The number of foreign workers residing in the Sverdlovsk oblast

By types of activity Agriculture, hunting and

Manufacturing 6320

Construction 13,640

Wholesale and retail trade; repair of motor vehicles, motorcycles, household goods and personal utensils

Other community, social and

Transport and communications

personal services

patent

2011–2014.

The number of foreign workers engaged in labor activities in the Sverdlovsk oblast on the basis of a

forestry

**employment in the economy (%)**

62,872 (2.93)

978 (1.34)

4834 (0.99)

9168 (6.88)

7248 (2.16)

2140 (1.02)

5165 (7.63) 63,056 (2.93)

795 (1.42)

(0.11)

5289 (1.11)

9148 (6.88)

4999 (1.48)

2381 (1.15)

(0.01)

(0.01)

5618 (6.91)

Individuals 16,133 33,339 34,639 56,446 206.65 103.90 162.96 Legal entities — — — — — — —

**Deviation (%)**

101.81 100.29 127.14

38.43 81.29 180.00

— — 8.70

76.49 109.41 84.70

67.21 99.78 57.91

53.29 68.97 119.14

80.85 111.26 80.64

— — 200.0

— — 58.82

75.17 108.77 81.45

**2011 2012 2013 2014 2012–2011 2013–2012 2014–2013**

80,169 (3.74)

1431 (2.12)

4480 (0.93)

5298 (3.99)

5956 (1.77)

1920 (0.95)

6 (0.02)

10 (0.01)

4576 (5.94)

16,133 33,339 34,639 56,446 206.65 103.90 162.96

6 (0.01) All respondents agreed on the necessity of and confirmed the fact of taking into account foreign workers' special social and cultural competences in the organization's management practices.

Among the most serious management challenges related to staff diversity, there were organizing internal communications (poor knowledge of the Russian language by foreign workers, lack of work contact with the employees who are the citizens of the Russian Federation), increasing the loyalty of foreign workers. Among the measures being taken, there were organizing trainings of foreign workers in the Russian language and culture (required by the Russian legislation).

Eight respondents (10%) proved to be familiar with diversity management methods and cross-cultural management. However, no special events aimed to create competences and understand sociocultural diversity challenges which were held in the organization. The values of sociocultural diversity were not part of the organization's strategy.

All the respondents noted the need to deepen professional knowledge in the field of diversity management and cross-cultural management.
