Moscow Aerostar’s Current Situation:

•Need to maintain standard of quality and service and its reputation

•“As an oasis of Western efficiency in the midst of the Russian economic and political hurricane”

Employees Families

Employees Families

CanadianGovernment

RussianShareholders

CanadianShareholders

RussianCitizens

•Training

•E.g.: learning methods, role playing, broken telephone

•Miscommunication

•Russians learn by having well-defined steps to follow under different circumstances (uncertainty avoidance)

•Recruitment

•Inappropriate interview process, including questions and reference checks

•Decline in perceived good applicants (few (Russians are not specialized in hotel management)

•over-qualification is not the problem (Russians are generally very educated)

•Work Ethic/Motivation

•” no real work ethic” (from Canadian perspective), e.g. punctuality, drinking on the job, vacation days (`being` culture)

•employees are unsatisfied with compensation and benefits (collectivism)

•lack of interest in promotion

•lack of interest in hotel industry

•Operations/Management

•over budget

•no decrease in expatriate influence

•low productivity

•western management style is superior using western training approach on Russian employees

•promotion is a good thing

•compensation reflects greater motivation increasing expenses, not creating motivation

Urgency

High

Low

ImportanceHigh Low

“Given the lack of understanding of Russian (former communist) culture, Moscow Aerostar is having trouble recruiting, developing and retaining quality employees who are motivated to work. In particular the management team.”

• Builds employee morale job satisfaction

• Clears up communication on both sides

• Decrease control of expatriate influence

• Improves productivity through effective training

• Increase the number of qualified applicants

Key Criteria Alt 1 – Russian Manufacturing Op.

Alt 2 – New Corporate Culture

Alt 3 – Western Hospitality Industry

Employee morale / job satisfaction

ImprovesCommunication

Decrease expat. Influence

Improves productivity = effective training

Recruitment

Create new corporate culture with Russian and Western influences

•Recruitment process

•Training program

•New corporate culture

•Compensation system

M J J A S O N D

Send Laurie to training camp x

Recruit Russian HR professionals x

Devise new training program x(Re)train employees and supervisors x x x x x x x

Implement new value system x x x x x

Establish and enforce code of ethics x x x x x

Modify compensation plan x x

•Number of qualified applicants

•Semi-annual productivity assessment

•Semi-annual budget checks

•Annual employee and management performance appraisal

•Employee questionnaire about satisfaction, management, etc.

The End.

Questions & Comments