**1. Introduction**

There are two main causes of great importance of diversity factor in economic development of Eurasian Economic Union countries such as Russian Federation, Kazakhstan and Belorussia.

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First of all, these countries had sustainable growth of international investment projects from the beginning of the twenty-first century. Second, there is a negative trend for decreasing economically active population. For example, rate of able-bodied population in total population in Russian Federation and such industrial region as Sverdlovsk oblast (4.5 million citizens) decline from 67.6 (64.2) to 64.0 (61.0)%. Unfortunately, it is a long-term trend. On the one hand, this can be explained by falling birth rates as a result of negative economic situation in the early 1990s. Another reason for reducing economically active population is low life expectancy and high incidence of disease, also resulting from the negative effects of transitional reforms (**Figure 1**).

The main human resource management (HRM) problems connected with ethnic and cultural diversity are the following:


As a result of these problems, potential productivity is not achieved, employee's creativity and innovative activity fall and staff turnover and evasion of performance increase.

**Figure 1.** Rate of able-bodied population in total population (%).

The experience of solving these problems in the tradition of American and European management is represented by the concepts of managing social and cultural diversity (diversity management) and intercultural management (cross-cultural management). The research in the theory and practice of social and cultural diversity management held in the Sverdlovsk oblast became the basis for this article. The objective is taking into account the experience of the European Union countries to determine the prospects for developing practices of social and cultural diversity management in the organizations of the Sverdlovsk oblast which use foreign labor.

The tasks to be solved to achieve this goal are:

First of all, these countries had sustainable growth of international investment projects from the beginning of the twenty-first century. Second, there is a negative trend for decreasing economically active population. For example, rate of able-bodied population in total population in Russian Federation and such industrial region as Sverdlovsk oblast (4.5 million citizens) decline from 67.6 (64.2) to 64.0 (61.0)%. Unfortunately, it is a long-term trend. On the one hand, this can be explained by falling birth rates as a result of negative economic situation in the early 1990s. Another reason for reducing economically active population is low life expectancy and high incidence of disease, also resulting from the negative effects of transitional

The main human resource management (HRM) problems connected with ethnic and cultural

(a) Differences in religious and cultural traditions. Different religions have different potentials for integrating into the Russian, European and American business culture. For example, the Hindus demonstrate a high level of tolerance which is preached in Hinduism and Buddhism. As SIETAR research shows that there are an average of 15% fewer conflicts between Hindu employees and Christian employees than the conflicts within the group consisting of only Christians. At the same time, the number of conflicts between Pakistani employees (Muslims by religion) and Christian employees, on the opposite, is 20% bigger

As a result of these problems, potential productivity is not achieved, employee's creativity

64.6

61.9

61.0

Russia

oblast Sverdlovsk

62.5

reforms (**Figure 1**).

diversity are the following:

72 Human Capital and Competences in Project Management

than the average [1].

67.6

56.0

58.0

60.0

62.0

64.0

66.0

68.0

70.0

66.9

**Figure 1.** Rate of able-bodied population in total population (%).

66.0

63.7

(b) Foreign employees' poor knowledge of the official language.

(c) Inflexible policies of the companies towards ethnic and cultural diversity.

and innovative activity fall and staff turnover and evasion of performance increase.

65.3

64.0 64.2

63.1

2011 2012 2013 2014 2015 2016

